Madison Public Market Business Plan

Madison Public Market

BUSINESS PLAN

Updated: October 2020

Leadership

City of Madison Public Market

Development Committee

Voting Members

Anne Reynolds (Chair)

Barry Orton (Vice Chair)

Alder Syed Abbas

Alder Marsha Rummel

Alder Lindsay Lemmer

Daniel Falcone

Lindsey Day FarnsworthLeslie Peterson

Tim Gruber

Jeff Glazer

Katy Stanton

Technical Advisors (Non-Voting)

Adam Haen

Ex-Officio (Non-Voting)

Jamaal Stricklin

Madison Public Market Foundation, 501c3

Board of Directors

Jamaal Stricklin (President)

Sujhey Beisser

Karen Crossley

Victoria Davis

Laura Heisler

Rachel Kerr

Larry Palm

Anne Reynolds

James Shulkin

Leslie Watkins

Ex-Officio (Non-Voting)

Anne Reynolds

Foundation Consultants:

Amanda White (Fundraising)

Megan Ballard (Project Coordination)

Public Market Advisory Council

Betty Banks

Craig Bartlett

Peter Cavi

Al Cooper

Suzanne Fanning

Greg Frank

Peter Grey

Alison Helland

Jonny Hunter

Ken Monteleone

Melanie Ramey

Helen Sarakinos

Trey Sprinkman

James Shulkin

Steve Suleski

Missy Tracey

Madison Public Market Business Plan

Updated: October 2020

Project

Madison Public Market Business Plan

Updated: October 2020

CONTENTS:

Part 1: Introduction & Background ..................................................... 2

Part 2: Project Location ....................................................................... 9

Part 3 Building Program ..................................................................... 13

Part 4: Site Plan & Architecture ......................................................... 19

Part 5: Capital Budget ....................................................................... 30

Part 6: Governance ........................................................................... 31

Part 7: Market Merchants .................................................................. 34

Part 8: Entrepreneur Pipeline & Programing ..................................... 38

Part 9: Market Operations ................................................................. 43

Part 10: Market Analysis and Marketing Strategy ........................... 54

Part 11: Community & Economic Impacts ....................................... 65

Part 12: Equity & Inclusiveness .......................................................... 67

Contact Information .......................................................................... 69

Madison Public Market Business Plan

Updated: October 2020

Part 1: Introduction &

Background

Why a Madison Public Market

The purpose of the Madison Public Market is to create a year-

round destination featuring a diverse mix of merchants offering

fresh produce from local farmers, culturally eclectic prepared

food, and locally made handcrafted goods. The market will be a

hub for business incubation. It will be a community gathering

space that highlights local artists and musicians, hosts community

events, and supports a range of activities for residents and visitors

alike.

The core mission of the Public Market is equity-based economic

development. The project aims to lower barriers to entry and

create a supportive environment for diverse entrepreneurs to

launch a new business. With the MarketReady Program, the Public

Market project has already begun working with a cohort of

passionate and committed entrepreneurs who are preparing their

businesses for launch in the market’s Food Innovation Center. The

Market builds on Madison’s existing strengths and competitive

advantages in the food industry to grow the next generation of

food-based businesses. It will bring together dozens of early-stage

businesses under one roof in a space that offers exposure,

affordable rents, and support services.

The project will repurpose and existing and obsolete city-owned

Fleet Services garage to create a truly special community

destination. All of this will happen in a unique setting, located at a

highly-visible gateway to central Madison and adjacent to a 5-

acre park along the Yahara River within Madison’s Capitol East

District.

The Public Market creates a powerful catalyst for entrepreneurship,

as well as a unique and inviting community space that will

become one of Madison’s beloved destinations for residents and

visitors alike.

Business Plan Purpose

The Intent of this Public Market Business Plan is to guide decisions

by the City of Madison and the Public Market Foundation in the

implementation of the project and provide information to

Madison Public Market

Vision

The Madison Public Market

will be a vibrant year-round

destination where new

entrepreneurs and long-

established Madison

favorites will offer the best

of our local food and

handmade goods. The

market emphasizes equity

through entrepreneurship

and is already supporting

diverse entrepreneurs on

their journey to launching a

business at the market. The

market will feature produce

from Wisconsin farms,

culturally diverse prepared

food, locally-made food

products, and handcrafted

arts/crafts. The space

celebrates our unique

traditions. It includes food

processing, business

incubation, and workforce

training to strengthen our

food system. It is a

cherished and inclusive

community gathering

space with art, music, and

events that bring people

together.

Madison Public Market Business Plan

Updated: October 2020

potential vendors, project partners, and project investors about

how the Public Market will be built and operated.

Working with Projects for Public Spaces (PPS), the City completed

the original Public Market Business Plan from 2013 to 2015

(adopted by the City of Madison Common Council in October

2015). The City of Madison Economic Development Division Staff,

with review and assistance from the Public Market Development

Committee (PMDC), has updated the Business Plan several times

as the project has evolved.

This Business Plan is the product of a multi-year effort, led by the

City of Madison and including input from dozens of partner

organizations and stakeholders, hundreds of potential public

market vendors, and thousands of community members through

surveys, focus groups, workshops, social media, online forms, and a

variety of other outreach activities.

Project Background

Background:

In 2012, the Public Market Development Committee (originally

named the Local Food Committee) convened to study the City's

food economy and make recommendations for the location and

vision for a Madison Public Market. The Committee spent two

years conducting research, talking with stakeholders, and forming

the basis of a vision for the project. Work included researching the

region's food system, learning about public markets in other cities,

and surveying potential vendors.

Business Plan:

In 2013, the City engaged a consulting team to develop the Public

Market Business Plan. The business plan process took two years

and involved a robust community engagement effort that

touched over 2,000 community members and potential vendors

through events, workshops, surveys, and focus groups. The

Common Council adopted the Business Plan in October of 2015

and staff has continued to make periodic updates to the Business

Plan document. The city conducted the Business Plan in three

phases, with Council action approving each one:

1. Vendor cultivation and market research (RES-14-00370)

2. Location selection (RES-14-00746)

3. Final business and operating plan (RES-15-00814)

Building on Regional

Economic Strength

Madison is located at the

center of one of the most

diverse and abundant

agricultural regions on the

planet. Food is an

important regional

economic driver:

top 2% - Dane

County’s nationwide

ranking in agriculture

production

24,000 - People

employed in in food-

related industries in the

Madison Region.

7,000 - Projected job

growth in food processing

and food preparation in

Dane County by 2027,

Madison Public Market Business Plan

Updated: October 2020

A few of the entrepreneurs in the Madison Public Market’s MarketReady Program seen

here visiting the Midtown Global Market in Minneapolis. The program has 30 participants

who are pursuing their interest in launching a business at the Public Market.

Racial Equity Impact Analysis:

The Public Market is an equity-based economic development

project and the core of its mission is supporting diverse

entrepreneurship. At the direction of the Common Council, the

Business Plan process included applying the City's Racial Equity

Impact Tool to the project. The RESJI Analysis led to ten specific

recommendations for how the Public Market can have a positive

impact on communities of color in Madison. The City and Public

Market Foundation are implementing these recommendations in

the ongoing planning process. The Public Market Equity Report

continues to guide all aspects of the project. The Public Market's

MarketReady Program was one outcome of the Equity Analysis.

The City is currently updating the RESJI Analysis as part of the

projects architectural design process. MarketReady businesses

now form the core of our Food Innovation Center candidates.

Madison Public Market Business Plan

Updated: October 2020

Implementation Strategy:

After the Common Council approved the Business Plan, the PMDC

and city staff next developed the Public Market Implementation

Strategy in 2016. The Common Council approved the

Implementation Strategy in March of 2016 (RES-16-00194). The five

Work Elements have formed the basis of the efforts by City Staff,

the PMDC, and the Public Market Foundation since 2016.

Five Work Elements from the Implementation Plan:

1. Governance/operations

2. Funding

3. Design

4. Vendor and client development

5. Outreach and momentum building

Over the last three years since the completion and approve of the

Implementation Strategy, the City staff and the Public Market

Development Committee (PMDC) have made continual progress

on all five work elements. From a governance and funding

standpoint, the Public Market Foundation was formed to become

the operator of the Public Market. The Foundation now has a

strong Board, bylaws, 501c3 status, several subcommittees, and is

ramping up its operations. From a design standpoint, the City is

working with an architecture team to finalize plans. Most

importantly, the City has continued to reach out to and cultivate a

diverse pool of businesses interested in operating within the Public

Market. There are currently 200 businesses that have completed a

detailed interest forms and expressed their desire to be affiliated

with the project. The City has also launched the MarketReady

Program, which is a training, technical assistance, and small grant

program focused on supporting prospective Public Market

Vendors and Food Innovation Center Clients.

History of Common Council Action on Public

Market:

As a City-led and City-sponsored project, the Madison Common

Council has played a key role in overseeing the Public Market

project, with more direct oversight provided by the City’s Public

Market Development Committee. All key decisions authorizing

next steps in the process have included Common Council

approval. Below is a list of Common Council Resolutions

authorizing next steps in the project since 2011:

Madison Public Market Business Plan

Updated: October 2020

 7/5/11 - RES-11-00586 – Resolution to create Local Food

Committee

 2/5/13 - RES-13-00078 – Resolution to authorize RFP for

Business Plan

 1/6/14 -RES-14-00370 - Resolution to accept Business Plan

Phase 1 (market study)

 5/7/14 - RES-14-00746 - Resolution to accept Business Plan

Phase 2 (site selection)

 10/6/15 - RES-15-00814 - Resolution to approve Final

Business Plan and request staff and the PMDC to create an

implementation strategy

 3/15/16 - RES-16-00194 - Resolution to approve the

Implementation Strategy and direct next steps on each of

the 5 “Work Elements” identified within the Strategy.

 5/17/16 - RES-16-00362 – Resolution authorizing next steps

with design

 6/21/16 - RES-16-00461 - Resolution authorize funding for the

MarketReady Program

 6/21/16 - RES-16-00464 - Resolution to engage Funding

Consultants (Fundraising and NMTC)

 9/6/16 - RES-16-00615 - Resolution to engage Architects to

develop conceptual design

 11/22/16- RES-16-00872 – Resolution changing the name

Local Food Committee to Public Market Development

Committee, adding members, and restructuring the

committee mission and composition.

 2/7/17 - RES-17-00104 - Resolution to approve MarketReady

contract with community partners to administer the

program

 8/1/17 – RES-17-00636 – Resolution authorizing CDBG

funding for a portion of the MarketReady Program funding

 12/5/17 – RES-17-00962 – Resolution identifying Public

Market Foundation as fundraising entity and issuing RFQ for

Operator

 5/1/2018 – RES 18-00356 - Resolution approving the Madison

Public Market Foundation as the future operator of the

Madison Public Market

 7/10/18 – RES 18-00522 – Resolution authorizing a RFP for

professional architectural and engineering services to

design the Public Market

 7/24/18 – RES-18-00570 – Resolution authorizing City to

retain outside counsel for financing Public Market

 2/5/19 – RES-19-00093 - Resolution authorizing a contract

with MSR provide professional architectural & engineering

design services & construction administration services

Madison Public Market Business Plan

Updated: October 2020

 2/5/19 – RES-19-00119 - Resolution approving the

Collaboration Agreement between the City of Madison

and the Madison Public Market Foundation

 9/15/20 – RES--20-00672 – Authorizing staff to apply for and

accept Economic Development Administration (EDA)

funding to support the construction of the Madison Public

Market and if awarded, committing city matching funds for

the construction of the Madison Public Market and draw

down funding from TIF District 36.

Madison Public Market Business Plan

Updated: October 2020

Madison Public Market

Summary of Progress to Date:

 Pre-2011: City looks at opportunities for a Public Market

 2011-2013: The Committee is formed and begins research and

outreach to create a vision for a Public Market that will benefit

Madison

 2013: Project For Public Spaces (PPS) engaged to develop a

business plan

 2014: Location selected and approved by the Common

Council after analysis and community input

 2015: Business Plan completed and adopted by Common

Council

 2016: Public Market Implementation Strategy completed and

approved by Council

 2017: The Public Market Foundation is formed and the

MarketReady Program is launched

 2018: The Public Market Foundation builds its board, receives

lead donations, and works with the City on the operating plan.

The MarketReady Program participants continue making

progress on business plans, securing funding, working with

business coaches, etc.

 2019: The City selected an Architect/Engineer team to

complete the design, the Madison Public Market Foundation

was awarded 501c3 status, the City and the Foundation

executed a Collaboration Agreement, and contracts have

been signed for lead private donations.

 2020: The City and the Public Market Foundation apply for EDA

CARES Act funding to launch the Food Innovation Center

Madison Public Market Business Plan

Updated: October 2020

What does the Public Market

mean for the Farmers Market?

Madison is fortunate to have

the nation’s largest producer

only farmers market

downtown, as well as several

great neighborhood farmers

markets. Madison’s farmers

market tradition isn’t going to

change with the Public

Market, and will be

strengthened through

partnerships. The Market

Kitchen at the Public Market

will provide opportunities for

farmers to create value-

added products that they can

sell year-round. The Public

Market can also be a place

that farmers bring surplus

products to be processed or

sold in bulk. With classes and

event space, the Public

Market and Farmers Market

can be marketed to the

community in partnership. The

City has been coordinating

with the Dane County Farmers

Market Management and

Board to ensure that Farmers

Market and Public Market

work in tandem.

Part 2: Project Location

The Madison Public Market will be located at the corner of First

Street and Johnson Street. This site selection decision was based

on several factors:

 City Ownership – The Public Market will repurpose an existing

building that is already owned by the City of Madison. The

Fleet Services operations that currently occupy the building will

be relocated in 2020. The Public Market creates a new use for

what would otherwise be a vacant and obsolete structure

 Building Characteristics - The building’s high ceilings, open

clear span spaces, solid construction, and visible location

make it well-suited to be repurposed as a unique Public Market

that will be enjoyed by the community for generations to

come. Further, reusing this existing facility is a more sustainable

approach than building a new structure and sustainability

features will be woven into the design.

 Visibility & Multi-Modal Access – The Public Market will be

prominently located at a key gateway into the central City.

The site sits on a high visibility commercial corner. The site is also

served by 10 different bus routes and has seven-day per week

bus services. In addition, the site is well-served by pedestrian

and bicycle infrastructure. The Yahara Path provides access

across the Isthmus and the Mifflin Bike Boulevard provides a

connection downtown. This location is easily accessible from

the Airport and I39/90 for out-of-towners.

 Potential for Sales – As part of the PPS Business Plan, the City

commissioned a “Huff Gravity Model” analysis to evaluate

different locations for sales potential. Based on population

density and spending patterns of people within different travel

time distances to the site, the analysis estimated that the

selected site for the Public Market could achieve $16 to $20

million in annual sales. These sales estimates exceeded all

other options being considered.

 Potential for Value Added Output - Clients in the Food

Innovation Center are expected to produce merchantable

intermediate and final food and related products for trade in

wholesale markets or as commissary center style

manufacturing to support auxiliary businesses. Using industry

specific modelling provided by ACDS, LLC, the Food

Madison Public Market Business Plan

Updated: October 2020

Innovation Center expects its clients to produce $382,000 in

output value per employee.

 Site Size –The Public Market parcel is 3.5 acres. The vision for

the Public Market is a place with bustling activity including

events, wholesaling, and food processing. These uses need

ample space for trucks loading docks, parking, etc. This site

provides that.

 Vendor Preference – The City surveyed potential Public Market

vendors on their preferred location, and vendors tended to

prefer the near East Side.

 Connection to parks, trails, and river – The Public Market will be

located adjacent to Burr Jones Field, which is a 5-acre city

park. With a large city park adjacent to the Public Market,

there will be opportunities for events, festivals, games,

concerts, food cart rallies, pop-up markets, etc. that can both

bring new activity and energy to Burr Jones Park and

contribute to the success of the Public Market.

 Proximity to the Yahara Riverway – The Yahara River is just

beyond the Park. The Yahara Riverway Corridor has been the

subject of a separate City-sponsored planning process.

Conceptual plans include the potential of a pedestrian

promenade, boathouse, kayak/canoe access point, and

plaza areas. This would connect the Public Market to the river

and Madison’s lake system.

 Northside Food Corridor – Stretching North from the Fleet

Services site, the Packers/Pennsylvania Avenue corridor is

another opportunity for projects and development that

complements the Public Market. Largely industrial in

character, this area offers opportunities for low cost food

storage and processing space to serve businesses and

organizations that would benefit from proximity to the public

market but would favor lower cost, industrial space. As

redevelopment plans for the Oscar Mayer site are developed,

opportunities for connections to the Public Market will be

explored. The Public Market site is uniquely positioned to

connect the burgeoning Capitol East District with potential

new activity at the Oscar Mayer site and adjacent areas.

Community leaders on Madison’s north side have embraced

the idea of this part of the City become a Food Corridor, with

more businesses and investments in food-related enterprise. It

Madison Public Market Business Plan

Updated: October 2020

The City’s Fleet Services Building will become the home of the Public Market after Fleet

Operations move to Nekoosa Trail. With it’s high ceilings, open spaces, and solid construction,

the building is well-suited to becoming a unique Public Market.

should be noted that the FEED Kitchens (a shared kitchen

incubator) is also in this area.

 Capstone to the Capitol East District - The Public Market site is

the eastern entry to the City’s Capitol East District. This area

has been the subject of a multi-year economic development

effort. The District extends from Blair Street to First Street along

the East Washington Avenue Corridor. The District is in the

midst of a significant transformation. City projections indicate

that the Cap East District will see another 1,200 units of housing,

800,000 square feet of commercial space, and $300 million in

investment over the next 20 years. Creating the Public Market

in this growing area will help the Capitol East District continue

to blossom, and the Public Market will benefit from the growth

and investment in surrounding properties.

 Opportunity Zone – The Public Market and FIC will be located

within the City of Madison’s Northside Opportunity Zone

(Census tract 55025002100). The project expects to attract

private investment as a result of business development activity

that will be made possible through this facility.

Madison Public Market Business Plan

Updated: October 2020

Public

Market

Capitol East District

Downtown

UW Madison

Maple Bluff

Public Market

Site

Orientation

Map

Northside

Madison Public Market Business Plan

Updated: October 2020

A Place for Art, History, and

Civic Story-Telling

The Public Market will include

art, exhibit spaces, and

opportunities for diverse civic

story telling. One idea for an

exhibit is to showcase the

“Stony the Road” project. This

project is an effort by a group

of local citizen historians who

are chronicling the rich history

of Madison’s first African

Americans who settled on the

near east Isthmus. This story

interweaves the history of the

city, its rich African American

history and ever-changing

diversity.

The Public Market will include

iconic pieces from local artists,

and will weave local design

into the furniture, fixtures, and

finishes of the space.

Part 3 Building Program

The Public Market Building Program is the mix of uses that occupies

space within the facility. The Public Market consists of the

components listed below. The Floor Plan in the next section

depicts how these components will be laid out on the property.

The Market Hall

The Market Hall will be the heart of the Public Market. It will

occupy a large space that is currently one of the vehicle service

bays of the Fleet Services building. The space will feature large

overhead doors that lead into a vibrant space, filled with

merchants featuring unique products. The Current plans for the

market hall feature the following elements

 Prepared Food Vendors – The Market Hall plans include 12

prepared food vendor spaces in the market hall. These

spaces will range from 200 to 600 square feet. They will

include cooking ventilation hoods, utility access, public

health approved sinks, cooking areas, and seating areas

for customers. The potential tenants for these spaces

include unique culturally diverse food vendors offered

prepared food options to eat on-site or take home.

 Non-Cooking Stalls – The Market Hall also includes 11 non-

cooking stalls that will range from 200 to 800 square feet.

These spaces will feature a mix of food and non-food

vendors that may include cheese, butcher, ice cream,

value-added food products (jams, salsa, sauces, etc.),

produce, and handmade craft items. The spaces will

include utility access points, lightings, and some casework.

 Start-up Stalls – The floor plan for the Market Hall includes 6

stalls specifically designed to be leased to very early-stage

businesses. The spaces will be 80 square feet and will be

fully fit out with casework, display racks, lighting, utilities,

etc. so that a vendor can occupy the space and begin

doing business with limited cost.

 Dairy Farmers of Wisconsin Showcase – The Public Market

includes a special partnership with the Dairy Farmers of

Wisconsin. The Public Market will include a one-of-a-kind

space located at a key location within the Market Hall that

is sponsored by the Dairy Farmers of Wisconsin and

Madison Public Market Business Plan

Updated: October 2020

Institutional Food:

Opportunity for Growth

From hospitals, to schools, to

colleges, to corporations,

Madison has a large number

of local institutions with food

service operations. Working

with local partners, the Public

Market is interested in support

programs and provide tools to

connect local food with local

institutions. As a large and

flexible commercial kitchen

with cooking and food prep

space, the Market Kitchen

can accommodate some of

these uses.

designed to highlight the best of Wisconsin dairy. The

space will feature Wisconsin Cheese and possibly other

dairy products and will “tell the story” of the importance of

dairy to Wisconsin’s economy and culture.

The Entry Hall

This space within the Market will occupy the smallest of the three

garage bays. It will be a key entry into the market. The space

includes two large side-by-side overhead doors that will spill out

onto an adjacent plaza area. The space will include a large

anchor restaurant space, anticipated to be occupied by a local

restaurant/brewpub operator. The space will also feature several

vendors and a generous aisle spaces that can accommodate

pop-up and temporary vending as well as seating areas. Smaller

than the “Market Hall” the “Entry Hall” will be a unique and

somewhat more intimate space within the market.

The South Hall (Flex Space at the Food

Innovation Center)

The South Hall will function as a multiple-use or flex space that

allows for a variety of activities. This space covers over 6,700

square feet and is designed to allow easy reconfiguration for a

variety of activities including light manufacturing, product storage,

aggregation, packing and sorting. The space can also

accommodate storage of shared-use food processing equipment.

Finally, the space can also be used for alternative activities such

as temporary vending, special events, indoor farmers markets,

craft fairs, banquets, weddings, and other community uses.

It is important to note that the South Hall is a major component of

the Food Innovation Center, which is embedded throughout the

Madison Public Market. It will be critical for MarketReady

businesses and other startups looking to engage in or diversify into

manufacturing for intermediated distribution.

Madison Public Market Business Plan

Updated: October 2020

Market Kitchen at the Food Innovation

Center

Working with local partners, the Market Kitchen provides a vital

piece of food-based economic development infrastructure for the

Public Market and the broader community. The Market Kitchen

will be a 1,200 square foot space. The Market Kitchen is the

primary processing center and training facility for the Food

Innovation Center. It can also be programmed during Market

hours with guest chefs, restauranteurs, home cooks, and

celebrities. It is designed so that it can be used by multiple

processors in a single shift. Processing activities can also be

extended into the flex manufacturing environment of the South

Hall. The Market Kitchen can also be used as a training facility or

as a catering kitchen to serve banquets and events in the Market.

The Kitchen includes a wide “pass through” counter directly into

the South Hall to facilitate its use an additional flex manufacturing

space or as a means to support events in the South Fall.

The Kitchen will be a commercial-grade facility with a cooking

area, nine food prep stations, dishwashing area, and cold/freezer

area. The South Hall, as noted previously, is designed to be

compliment and expand the processing and packing activities

found in the Market Kitchen using flexible manufacturing

techniques such as united and palletized processing modules. The

processing areas are designed to accommodate a variety of uses

including and will carry the necessary food safety certifications to

meet USDA, FDA, and local health requirements for a wide range

of processing uses.

Arts and Cultural Expression

Scatted throughout the market will be small spaces for local artists

and for civic story telling. Spaces within the hall will feature

curated local art or historical exhibits. Other exhibits and

interpretive displays telling the story of Madison - its culture, its

environment, and, in particular, its food and agricultural traditions

– will be programmed as part of the market. Rotating art

installations that build on the successful “Bubbler” project at the

Madison Public Library are being explored as part of the project.

In addition, given the site’s proximity to the river and location on

the isthmus, the Public Market will incorporate information and

displays about the importance and health of Madison’s lakes and

waterways.

Madison Public Market Business Plan

Updated: October 2020

The focus of arts and cultural expression at the Market will be on

celebrating diversity and under-represented communities in our

region. Using storytelling through a variety of artistic and

communication modes, there will be exhibits and art at the market

to share the roots and history of Dane County's rich diversity,

particularly around food, local agriculture systems, and the Public

Market site itself.

For example, the market may include stories of the Ho Chunk

Nation who had a large settlement just across the Yahara River,

early African American settlers who first lived on Dayton and Mifflin

Streets, Hmong farmers who enrich Dane County's food offerings

and system, and Latinx settlers who help define our local food

culture. The project will include artwork within the Market that is

created by and connects with young people who are hopeful,

excited about local food, and deeply invested in creating a

healthy community now and in the future.

Outdoor Plazas

There are several outdoor plaza areas planned for the Public

Market. These spaces provide different experiences and

opportunities. The plaza spaces are designed to encourage

people to meander around the area and into the adjacent park.

The outdoor spaces will include amenities such as moveable

seating and tables, buskers, attractive landscaping, and a variety

of play features for children and families.

Parking

The site plan includes a 120-stall parking lot. This is consistent with

the City’s required ratio of parking space to square feet of

commercial space and will meet the needs of the market most of

the time. There may be certain days when the parking lot is full

and parking will occur in adjacent off-site areas. The City will work

on strategies to limited parking usage by encourage transit,

walking, and biking to the market. The City is exploring

partnerships to provide off-site parking for vendors.

Support Spaces

A series of support systems and services has been planned within

the Market to facilitate the needs of all vendors in an efficient

manner.

 Market Offices – The space includes an office area on the

second level for the Market Executive Director and Staff. This

Madison Public Market Business Plan

Updated: October 2020

space will also be used for management of the Food

Innovation Center.

 Loading – As with other operational aspects of the Market, the

processes for delivering products to the Market and vendor

set-up will be complicated and will evolve over time through

the innovation and creativity of vendors and management.

Vendors typically find ways to use any available door or

opening that they can. One of the advantages of the Fleet

Building is that it offers multiple ways to load in and out of the

building and vendors will have a wide variety of delivery and

servicing requirements. Vendors and clients have a wide

variety of delivery and servicing requirements. A loading area

will be provided to accommodate a variety of truck sizes. The

exterior loading area will lead into an overhead door into a

storage, trash, and service corridor. The Public Market

operators will coordinate loading and deliveries. The priority is

to provide infrastructure space for loading (indoor and

outdoor) that is ample and flexible.

 Trash and Recycling – Vendors will be required to separate

and bring all waste and recycling items to the centralized

handling facility adjacent to the loading area. The trash area is

large enough and designed to accommodate a collection

system for organic waste (can be composted) cooking oil, fat,

plastic, paper and cardboard. Separate bins or containers for

each of these commodities will be supplied. Non-recyclable

materials will go into an enclosed dumpster area with space

for a compactor. The storage and trash areas will be designed

for easy cleaning.

 Dry Storage – While some of the permanent spaces can store

product within their leased or licensed premises, most of the

smaller stalls will require additional storage. A centralized cold

and dry storage facility has been planned in the same area as

the loading and trash area. The public market design includes

lockable storage units for vendors. These units will be a range

of sizes and offered as an add-on option to leases. The design

also includes a small locker room for vendors and storage to

serve the needs of the overall market operations. Clients of the

Food Innovation Center will have access to secured, access-

controlled storage for frozen, cold, and dry goods that must

meet stringent food safety and traceability standards.

 Cold and Freezer Storage – The market will include a shared

walk-in cold storage and freezer area. These spaces will

Madison Public Market Business Plan

Updated: October 2020

include rollable/lockable shelving units that vendors can rent

for their cold and freezer storage needs.

 Utilities – The market has been designed with a flexible utility

grid providing electricity, water and gas to tenant spaces. As

described previously, different types of vendors will have

widely varying utility needs. For example, a meat vendor

requiring extensive refrigeration or a BBQ vendor using a gas or

electric grill as part of their space, will use far more power than

a farmer selling tomatoes out of a box. Again, the design is

focused on maximizing flexibility. The City and the Foundation

are working on strategies to incorporate variable utility costs

into the pricing model.

Madison Public Market Business Plan

Updated: October 2020

Designing for Equity

The City’s Racial Equity and

Social Justice Initiative (RESJI)

team analyzed the Public

Market project. One of the

recommendations from this

analysis is that the physical

space needs to be designed

to be equitable, inclusive,

and welcoming. The City

and its architects have

conducted workshops on

how to accomplish these

goals. Ideas from these

workshops have helped

shape the site plan, color

palette of the building

materials, public arts plan,

layout of vending stalls, and

other aspects of the design.

Part 4: Site Plan & Architecture

The final design process for the Madison Public Market is nearing

completion. In 2018, the Common Council approved engaging

Minneapolis-based architect MSR along with local firms Ken Saiki

Design and Vierbicher to be the project’s design team (Common

Council Resolution File #54211). MSR is now working with the City’s

Economic Development Division and Engineering’s Facilities

Management team to complete the design work. This work is

being overseen by the Public Market Development Committee in

collaboration with the Public Market Foundation, the MarketReady

Program, and other stakeholders.

As noted previously, the Madison Public Market will be located at

200 N First St (corner of N. First and East Johnson). The City’s Fleet

Service division currently occupies the site. Due to Fleet’s growing

need for an updated facility, the City is in process of building a

modernized Fleet facility to be located on Nakoosa Trail.

Construction of the facility is anticipated to be complete by Fall of

2020. Upon completion, 200 N First St. will be fully vacated, then

adaptively repurposed to accommodate Madison Public Market.

The design is driven by the Public Market Building Program

described previously. The goal of the design is to create a Public

Market that is financially viable and that fulfills the overall

objectives of the project. With this in mind, there are several key

principles and philosophies guiding the design.

Design Principles:

 Beautifully Simple – The design vision for the Public Market is

for an authentic, welcoming, community-oriented market.

It will be a “working market” that is accessible to the

community and affordable to vendors. The design

deliberately avoids excessive adornment, expensive

materials, or other design elements that distract from the

market’s purpose. The building is designed with affordable

and durable materials to create a simple building designed

to last.

 The Vendors, Products, and Activity are Main Attraction –

The Public Market building should have sufficient signage

and architectural interest to invite visitors. However, the

building is the backdrop as the products, the vendors, the

people, and overall activity of the space form the main

Madison Public Market Business Plan

Updated: October 2020

event. The heart and soul of the Public Market will be the

vendors, the customers, and the ever-changing bustle of

the place.

 Inclusive and Welcoming – The City conducted a detailed

Equity Analysis of the Public Market as part of the Business

Plan. One of the resulting recommendations is that the

texture of the physical design of the market is welcoming

and inclusive. The City subsequently held workshops and

worked with the architecture team on how to achieve

equity in the market’s design.

 Mix of Indoor/Outdoor Places – There will be several

outdoor plaza areas on the Public Market site. The design

encourages blending of indoor and outdoor spaces with

large overhead doors and market activity that spills out into

the plazas.

 Flexibility – One hallmark of Public Markets is that they

evolve over time. The design emphasizes flexibility and

adaptability to allow for changes to occur. The Food

Innovation Center demonstrates the Market’s commitment

to providing a flexible environment for the City’s food

entrepreneurs to flourish. Embedding the FIC into the Public

Market ensures that microenterprises will have competitive

and flexible opportunities to develop, test, and produce

products while connecting with customers.

 Sustainability – The Public Market will be a model of

sustainable design. By ordinance, all City of Madison

facilities are required to achieve a LEED Silver rating or

better. In addition, the City of Madison recently adopted a

goal of becoming 100% renewably powered at all City

facilities. The City has begun discussions with Madison Gas

& Electric (local energy utility) about sponsoring a rooftop

solar installation at the Public Market, as well as

incorporating heat recovery systems and other energy

technologies. In addition to incorporating sustainability

features, the Public Market will include educational

displays explaining the sustainability technologies that are

incorporated into the building.

The complete package of architectural materials are available

and can be requested from the City of Madison. The following

provide several key images of the site plan and floor plans.

Madison Public Market Business Plan

Updated: October 2020

Site Plan

Madison Public Market Business Plan

Updated: October 2020

Floor Plan

Madison Public Market Business Plan

Updated: October 2020

Food Innovation Center Floor Plan – Level 1

Madison Public Market Business Plan

Updated: October 2020

Food Innovation Center Floor Plan – Mezzanine Level

Madison Public Market Business Plan

Updated: October 2020

Market Kitchen Layout

Madison Public Market Business Plan

Updated: October 2020

Madison Public Market Business Plan

Updated: October 2020

Madison Public Market Business Plan

Updated: October 2020

Madison Public Market Business Plan

Updated: October 2020

Madison Public Market Business Plan

Updated: October 2020

Part 5: Capital Budget

The City and the design team for the market are producing

multiple cost estimates for the project as the design is being

finalized. The budget for the project is $16.1 million and the

estimates show that the project’s design goals can be achieved

within that budget. Cost estimates are being prepared by MSR in

conjunction with Middleton Construction. The estimates are

conservative and build-in contingencies, inflation adjustments,

and other factors to ensure that the project as designed can be

delivered within the available budget.

The primary capital cost will be the design and construction of the

public market building. The Public Market Foundation will

contribute $2.5 million toward the construction costs out of a total

fundraising goal of $4 million. This additional $1.5 million will

provide a reserve fund to cover operating expenses during the first

several years of operations, before the market achieves the break-

even point.

Total Project Cost

The Public Market $16.1 million project.

Summary of Total Project Costs

Administrative and legal expenses

$710,699

Architectural and engineering fees

$1,773,692

Land Costs, Site, and Parking Improvements

$1,880,931

Construction

$8,043,282

Equipment

$1,234,126

Contingencies

$1,469,653

Startup Costs

$250,000

Working Capital for first years of operations

$700,000

TOTAL PUBLIC INVESTMENT

$16,062,383

Madison Public Market Business Plan

Updated: October 2020

Funding Sources

Primary Sources:

 City of Madison Capital Budget – The current adopted City

of Madison capital budget identifies the Madison Public

Market and will support the project with $7.0 million in Tax

Increment Financing (TIF) within Tax Increment District (TID)

36.

 Fundraising Campaign – The Madison Public Market

Foundation has launched a campaign to raise $4 million for

the project. Of this, $3.0 million will be provided for the

capital cost of building the Public Market. The remaining

balance will create an operating reserve for the

Foundation to cover any needs for the first several years of

operations.

 EDA CARES Act - The City and the Public Market

Foundation are seeking $5.5 million to launch the Food

Innovation Center. This funding covers construction and

equipment costs related to the FIC.

 State and Federal Grants – In addition to the three sources

identified above, the City is also monitoring opportunities to

offset the project costs with state and federal grants.

Part 6: Governance

The Public Market requires an adept and flexible governance

structure that is focused on financial viability, while also

safeguarding the unique public mission of the project. The City of

Madison will maintain ownership of the building while the Public

Market Foundation operates the market as an independent non-

profit organization. The Foundation is governed by a Board of

Directors and the market will be run by an Executive Director and

professional staff that will be hired in 2020.

The following describes the roles of key organizations in the

governance and operations of the Public Market:

City of Madison Role

As the process of developing the Public Market moves forward,

the City will continue in a leadership role, spearheading the

Madison Public Market Business Plan

Updated: October 2020

project’s funding, design, development, and construction. The

City’s Public Market Development Committee (PMDC) serves as

the public body that is providing leadership and oversight of the

project. The PMDC meets monthly in an open public meeting. All

final decisions on the project’s budget and development will

continue to work through the City’s public processes with approval

from the Mayor and Madison Common Council. The City’s

Economic Development Division staff provides support to the

PMDC and overall project coordination. The City’s Engineering

Facilities group is managing the design and construction process.

The City already owns the property and will continue to own it in

perpetuity. The Operating Agreement between the City and the

Foundation will ensure that the market is maintained and

operating in accordance with the community’s expectations.

From a funding perspective, the City is the lead capital contributor

to the project and will continue to pursue state and federal grant

support. Once the Public Market opens and the non-profit takes

over management and operations, the City will continue to be

involved as a member of the Board of Directors and will exercise

oversight as the owner of the property. The PMDC will likely

dissolve once the Public Market is under construction. Members of

the PMDC could transition to serve on the Board of the Public

Market Foundation.

Madison Public Market Foundation Role

The Madison Public Market Foundation was launched in spring

2017. It has incorporation documents, a Board of Directors, a

website, thousands of email subscribers and social medial

followers, and has secured 501c3 status.

The initial focus of the Public Market Foundation is leading the

capital campaign to raise funds from the community. Thus far, the

Foundation has raised over $1,000,000 for the project. As the

project gets closer to ground breaking, the Foundation’s role as

the operator will expand. Again, the plan is that the Foundation

will hire the professional market operations staff in 2020 to manage

both the Public Market and Food Innovation Center.

Collaboration Agreement

The City of Madison is leading the effort to fund and construct the

Public Market, which includes the Food Innovation Center. As a

major public investment, the City will retain ownership of the

facility. The Public Market Foundation will be the operator of the

facility, handling things like leasing, licensing, marketing,

Madison Public Market Business Plan

Updated: October 2020

maintenance, programming, etc. In 2018, the City and the Public

Market Foundation entered into a Collaboration Agreement to

formalize their partnership in the development phase of the

project. The Collaboration Agreement was the first step in

establishing a formal partnership between the City and the Public

Market Foundation. The agreement included terms related to the

responsibilities of each party prior to construction of the market. It

established that the City and the Foundation would work together

toward designing, funding, and constructing the Market. The

Collaboration Agreement was approved by the Foundation Board

of Directors and the Madison Common Council.

Operating Agreement

The Operating Agreement will be a more detailed agreement

between the City and the Foundation to establish the terms and

process for how the City will transfer operational responsibilities of

the Public Market to the Public Market Foundation and how the

City will oversee operations in the long term. This operating

agreement is the contractual basis for the success and growth of

the Market and includes:

 Standards of maintenance and security

 Standards of efficient and cost effective operations

 Goals for self-sufficient operations

 Goals for growth and development of the market

 Goals for raising funds

 Goals for social and economic inclusiveness

 Reporting requirement to the City on operations

 Financial management processes

 Vendor selection and leasing processes

 Performance measures and expectations

The overarching goal of the operating agreement is to ensure a

successful partnership between the City and the Foundation in the

operations of the market. The City needs assurance that its

investment will be protected and that the Foundation will operate

the Market in accordance with the City’s expectations. The

Foundation needs assurance that it will be given the flexibility and

authority to make necessary operational decisions to ensure the

success of the market as a place of businesses. The Operating

Agreement will be a critical document to establish this partnership.

Madison Public Market Business Plan

Updated: October 2020

What are the rules for

vendors? Will everything

be local?

The Public Market Operator

will establish specific criteria

for vendor selection. The goal

will be to fill the Public Market

with local entrepreneurs and

farmers who grow or make

their products. That said, the

operators will maintain

flexibility and adaptability.

They will strive to select

vendors that are consistent

with the spirit and mission of

the market. The objective is to

encourage entrepreneurship

and strengthen our food

system, not necessarily to

follow strict rules. For example,

an entrepreneur may want to

have a smoothie stand in the

Public Market. The operators

of the market might be

comfortable with him using

tropical fruit as an ingredient

even though it isn’t grown in

Wisconsin. However, they

may also work with that

vendor to connect with a

local dairy who could supply

locally-made yogurt.

Part 7: Market Merchants

Vendors are the heart of the Public Market. More than anything

else, the process of recruiting and selecting vendors will determine

the character and success of the Public Market. Over the last five

years, the City has led a thorough and deliberate process of

identifying and cultivating potential vendors. This process included

several vendor surveys, focus groups with different types of

vendors, and one-on-one outreach.

There are currently over 200 businesses that have completed the

City’s Vendor Interest Questionnaire to express their interest in

operating within the Public Market. This pool represents a wide

range of product types and levels of experience. Some are well-

established local businesses interested in the Public Market as a

new location to grow their enterprise, others are startup

entrepreneurs with nothing more than a rough concept for a

Public Market business. Several prospective vendors are interested

in a larger space for a restaurant, a bakery, a larger retail space,

or some type of food production facility.

The Public Market Operator (PMO) will ultimately manage the

process of recruiting and selecting vendors. Drawing from the

businesses who have completed the vendor interest questionnaire

and others, the PMO will work to achieve an appropriate mix and

balance of vendors that results in a dynamic and diverse public

market.

The criteria used to select vendors will include:

 Products – Is the product interesting, unique, and contributory

to the appeal of the market?

 Equity Goals – Do the vendor and products contribute to the

project’s equity goal of being a place for inclusive and diverse

entrepreneurship?

 Price – Does the vendor price items competitively and

accessibly?

 Personality – Vendors, and their employees, must enjoy people

and be upbeat and courteous.

 Reputation – Does this vendor have a positive standing in their

community and will their presence in the market help to build

the customer base and garner publicity?

 Service – Does the vendor understand how to present himself

or herself and treat people attentively?

Madison Public Market Business Plan

Updated: October 2020

The MarketReady

Program

MarketReady is a training,

coaching, and small

grant program focused

on developing Public

Market vendors. 83

applicants have applied

to the program. The

program will be

implemented over the

next two years. The

MarketReady program is

focused on creating and

supporting diverse

entrepreneship.

MarketReady

Applicants:

59% Female

29% Immigrants

62% People of color

 Knowledge – Does the vendor have a deep understanding of

their products and can they credibly answer customers’

questions?

 Commitment – Is the vendor willing to do what it takes to make

their business succeed?

 Presentation – What sort of merchandising techniques will the

business utilize?

 Innovation – Will the vendor provide customers with updated

products and merchandising?

 Competitive Strength – Does the vendor have an

understanding of their competition and how they will be able

to achieve and gain market share?

 Business Plan – How much are they willing to invest and what

are their sales projections?

 Local and Authentic – Is the product grown or made in the

Madison region and using local ingredients?

MarketReady Program

The City has launched the MarketReady Program in 2017 to

support the development of Public Market vendors and contribute

to the Public Market’s mission of being a place that creates

opportunities for diverse entrepreneurship among diverse

populations.

The City has seeded the program with $250,000 in funding and is

working with FEED Kitchens, WWBIC, and Dane County Extension to

implement the program. The program is providing training and

technical assistance focused on topics potential Public Market

businesses will face such as, preparing a business plan, getting

required licenses or permits, preparing a marketing plan,

purchasing supplies, etc.

Space Arrangements and Stall Design

Selected Public Market vendors will work with the Foundation to

identify a specific space within the market that meets their needs.

The Foundation is working with the architecture team on the

overall layout of the market. The floor plan for the market is

designed to align with the needs of potential vendors as expressed

though the vendor interest questionnaire and detailed interviews.

The interior of the Market Hall will include some vending stalls and

storefronts that are pre-designed and move-in ready for vendors.

These spaces will need signage and a few custom finishes installed

by the vendors. Other vendors may receive a tenant

improvement budget from the Foundation to design and install

Madison Public Market Business Plan

Updated: October 2020

their own customized space. These custom spaces will be guided

by Tenant Design Criteria guidelines created by the PMO and the

project’s architects. Some spaces will include cooking exhaust

hoods and/or walk-in cooler spaces for merchants that require this

equipment. All vendor spaces will have utility access (water,

electric, plumbing) as well as lighting, demising walls, and other

infrastructure.

Leasing and Licensing of Space

Allocation and assignment of space and equipment use in the

Public Market will be a critical task performed by the Foundation.

The mix of merchandise and types of vendors will

define the market more than anything else and will

require that the Foundation offer variable terms for

the different user bases.

The first steps with use agreements are to prepare

some materials such as a brochure that defines the

types of uses and access needs that will determine

whether a lease or licensing agreement will used,

denotes these spaces on a site layout, and answers

questions about costs, timing and other logistics.

These marketing materials can be used to guide

follow up conversations with the 200 vendors who

have completed the vendor interest questionnaire.

The next step will be to prepare a lease or license document. The

PMO staff will work one-on-one with each vendor to finalize and

execute use agreements.

Use Agreement Components

The PMO will work with outside legal support and a commercial

broker to prepare leases and license agreements for vendors and

FIC Clients. Some of the considerations that should be part of the

leasing process include:

 Rates – Rental costs for all spaces

 Terms – Length of leases offered to tenants

 Tenant Design Criteria – A process of submitting the design of a

stall for review and approval

 Tenant Improvement Dollars – Each tenant will be given a

location in the market. This location may be a move-in-ready

MarketReady Participant Jasmine Banks

with Perfect Imperfections

Madison Public Market Business Plan

Updated: October 2020

stall or a raw space. Depending on what type of space a

vendor is renting, the Foundation will negotiate providing

tenant improvement dollars to the vendor to outfit their space.

 Hours/Days/Seasons – The market has been designed so it can

be open for different uses at different times. The initial strategy

is to have core hours for all market tenants with an option for

longer hours in certain areas as illustrated in the market

drawings. The lease should establish the required hours for

each vendor to be open. FIC clients will have 24-hour access

to the facilities and may only work within certain seasonal or

day of week limits

 Add-ons – Agreements may include add on fees for features

such as storage area rental, access to the market kitchen, use

of specialized equipment, access to specially trained

personnel, and allocation of space within the shared

cooler/freezer space.

Madison Public Market Business Plan

Updated: October 2020

Part 8: Entrepreneur Pipeline &

Programing

One of the goals of the Public Market is to support startup and

early stage businesses, provide them an opportunity to develop

their concept and expose them to customers, and ultimately

enable them to grow out of the Public Market and into a larger

space or other formats. Not every Public Market vendor will follow

this trajectory – some vendors may stay in the Public Market for

decades, becoming cherished destinations that anchor the

facility. Others will use the Public Market as a springboard to grow

their business beyond the Public Market. This opportunity for the

Public Market to be a launch pad that

accelerates high-growth businesses out

of the Public Market can have a large

economic development impact –

creating jobs and tax base as these

businesses mature into larger companies.

Having businesses grow out of the Public

Market also brings turnover that adds

freshness and excitement to the market.

From an economic development

perspective, one role the Public Market

will play is to maintain a core group of

successful vendors who can sustain a

family-supporting business at the Public

Market. Some vendors will become

permanent fixtures at the Public Market

for generations. These vendors will give the market a sense of

permanence, familiarity and tradition. However, another

economic development objective is for the Public Market to be a

place where businesses can test a concept, get traction with their

product, scale-up, and eventually outgrow it. This process of

startup, growth, and expansion at the Public Market, creating

turnover in the space and accelerating the growth of businesses in

this sector amplifies the economic power of the project.

For example, a vendor at the Public Market who makes and sells a

unique value-added food product could have a space at the

Public Market and create a customer base. Over time, their

product could grow a regional and possibly national following. As

the product gets larger orders and shelf space in national

groceries, they may need to scale up to the point where they

MarketReady Participants Yakub Kazi and

Nausheen Qureishi with Ember Foods

Madison Public Market Business Plan

Updated: October 2020

need a manufacturing facility that they build or lease space within

one of Madison’s industrial areas. Another vendor who is a

budding chef who offers a unique menu of prepared foods at the

Public Market might eventually grow to have multiple restaurants

in Madison, and eventually open restaurants in other cities.

The intent will be for the Public Market to be accessible to multiple

different types of vendors and facilitate opportunities for

businesses to scale up. For some, this may simply mean taking on

a larger space at the market and becoming one of the anchor

draws of the facility. For others, it may mean moving out of the

market entirely. As with any enterprise, some entrepreneurs may

discover that their business concept simply is not viable. The Public

Market can be a place to follow the mantra of technology

entrepreneurship and “fail fast/fail cheap” to avoid the personal

financial damage that often accompanies owning an

unsuccessful business.

The process of vendors coming into the Public Market, developing

a business, testing their concept, scaling up, and eventually

maturing as local companies fundamentally consists of two areas

of focus:

The Front-End: Vendor Cultivation and Support

On the front-end of the process, the City and the Foundation will

continue to work with individual entrepreneurs and partner with

local resources to help businesses start within

the Public Market. The MarketReady Program

is currently the primary vehicle for vendor

development and support. As described

previously, the program is working with 30

early-stage entrepreneurs interested in being

in the Public Market. These individuals are

going through a custom business training

program. At the end of the training, they will

be eligible to compete for startup capital

and space within the market. The

MarketReady Program is in its pilot stage with

its first cohort of participants. The City and

the PMO intend to institutionalize the

MarketReady Program as a core function of the Public Market. In

addition, as the Public Market comes online, the City and the PMO

will layer on additional programs and services focused on

supporting startups at the Public Market.

Marketready Participant Morena Taylor with

Madre Yerba

Madison Public Market Business Plan

Updated: October 2020

The Back-end: Scale-up and Move-Out

Having a strong front-end process to cultivate startup vendors and

help them launch their businesses is an important economic

development function of the Public Market. Equally important is to

create systems and processes that help Public Market businesses

scale and ultimately move on to new types of space.

Business support at the Public Market will go beyond providing

resources to help entrepreneurs get started. The City and PMO will

facilitate programming, support, and connections focused on

businesses moving beyond their startup phase, scaling-up, and

maturing. Working with partners in the community, the PMO will

connect public market businesses with high-growth potential to

resources to provide them with capital and access to markets.

Public Market and FIC Business Acceleration Strategies:

The PMO will deploy several strategies to achieve this combination

of a strong front-end process that brings a pipeline of startup

businesses into the Public Market as well as a strong back-end

process that helps businesses mature-out.

1) Coordinated Life-Cycle of Business Services – The Public

Market will provide a package of ongoing business services

for vendors. This starts with the MarketReady Program and

other efforts focus squarely on finding, developing, and

supporting talented and committed entrepreneurs with a

dream of starting a business. Going beyond the startup

phase, the Public Market will build in programing to support

businesses as they face the challenges of growth – things

like hiring their first employees, developing their brand for

national audiences, finding contract manufacturers,

dealing with logistics challenges, dealing with expanded

regulatory challenges, etc. Working with local financial

institutions and organizations, the Public Market will also

connect businesses with capital to help them accelerate

their growth. This includes things like support with

negotiating the receiving end of a buyout. To provide this

coordinated package of life-cycle services to businesses,

the City and the PMO will work with a variety of local

partners including the WWBIC, the UW Small Business

Development Center, the UW Law and Entrepreneurship

Clinic, StartingBlock Madison, Madison Development

Corporation, and others.

Madison Public Market Business Plan

Updated: October 2020

2) Flexible Use Agreements – As stated previously, the Public

Market and FIC will have several long-standing businesses

that become treasured anchors of the facility for decades.

However, it will be the policy of the PMO to limit use

agreements in the Public Market and FIC to three years. All

initial agreements and extensions will require the approval

of the Foundation Board. This will be a tool for the

Foundation to maintain oversight and control over the mix

and balance of vendors, to maintain anchors, and to

encourage turnover.

3) Annual Consultation – In addition to regularly renewing

agreements, every business in the Public Market and FIC

will be required to have an annual consultation with the

Market’s Management. This will be an opportunity for the

vendor and the management to check in, discuss how the

business is performing, and talk about the long-term plans

of the business owners. For some, these conversations may

lead to the Foundation supporting the businesses next

phase, which may involve exiting the market to move into

a new space. This will be an opportunity for the

Foundation to facilitate connections between the business

and other resources and opportunities.

4) Open Books – Vendors at the Public Market and FIC will be

required to share their financials with the Public Market

Management. As described previously, a portion of rents

will be determined by a percentage of sales so the

management will automatically be getting sales data on a

regular basis. In addition, vendors will share all financial

information with the Foundation and the Foundation will

facilitate connections to outside professionals who can

review this information and provide feedback and

guidance to the businesses.

5) Internal Mentoring – Internal peer-to-peer mentoring by

vendors often happens organically at public markets. As

businesses sharing space within a facility, business owners

will naturally share ideas, learn from each other, see what

might be working at one market stall and adopt a similar

strategy. The Public Market and FIC will strive to not only

allow this to happen naturally, but to facilitate mentoring

relationships between well-established vendors and

startups.

Madison Public Market Business Plan

Updated: October 2020

6) Connections to Post-Public Market and FIC Opportunities –

The Foundation, and its partner organizations, will serve as

a conduit to information and resources that can help

vendors make their next move. To build this into their

operation, the Foundation will do things like:

 Host information sessions with commercial brokers

to talk with vendors who may be considering a next

move and share information about the commercial

real estate market, track potential space, study

rents, etc.

 Host information sessions with lenders to talk to

vendors about how to finance and manage growth

 Host food industry trade shows and events to

facilitate connections to national buyers

 Provide resources with relevant municipal

information related to opportunities for growth,

expansion, diversification of a food business – things

like zoning, public health, alcohol, and street

vending rules and regulations.

The Public Market and FIC are different from traditional business

incubators and accelerators. If successful, they will be an

important platform that incubates startup businesses in the

community and also accelerates businesses to higher levels of

success. The Public Market will not have an explicit policy limiting

the duration of time a vendor can stay. However, the Foundation

will emphasize helping vendors grow their businesses and help

connect them with the next opportunity.

Some businesses will open at the Public Market or FIC and operate

family-supporting businesses that stay there for a long time, while

other businesses will use the Public Market and FIC as a

springboard to new opportunities. This function of the Public

Market and FIC amplifies the economic impact of the project.

Rather than the economic development benefits of the market

being confined within the building itself, the Public Market and FIC

will ultimately be processes that creates a pipeline of experienced

businesses that fill empty storefront retail spaces, start restaurants,

create new food carts, occupy industrial parks, and create jobs

and tax base across Madison.

Madison Public Market Business Plan

Updated: October 2020

Part 9: Market Operations

Operating Hours

The overall flexibility of the Market and different types of vending

opportunities will allow the Market to establish operating hours that

are also flexible. The precise schedule will be set before

construction begins through conversations with tenants and the

actual mix of merchandise. The pro forma is based on an

assumption that the market will be open five to seven days per

week.

The schedule must be very carefully considered, so the Market’s

businesses are not burdened with additional operating expenses

without the commensurate increase in revenue.

There does not seem to be a magic rule for the ideal number of

days for a market to be open. For example, Borough Market, one

of the London’s main fresh food markets, is fully open four days a

week and is partially open Monday, Tuesday, and Friday. Most of

the large public markets in the US are open at least five or six days

a week. There are exceptions, and some are only open three or

four days per week.

In general, the permanent vendors in Madison’s Public Market

should be open for the most hours, with some having the option to

be open whenever they wish beyond the Market’s core hours,

particularly those that are producing value-added products, such

bakeries. The same concept would apply to the anchor

restaurant/café spaces that could open early for breakfast and

close late after dinner. The floor plan is designed to maximize

flexibility and build in the opportunity for this type of variation in

hours of operations for different types and scales of businesses.

The Market Hall will, in large part, define the core market

experience with open stalls, abundant displays and ease of

circulation. The hours for the Market Hall should be chosen for

consumer convenience first and vendors second. The anchor

merchants on the perimeter of the market will be able to set

variable hours, but this will need to be coordinated by the Market

Management. The South Hall will hours will largely depend on

what is happening that day. If it’s a pop-up markets, a community

event, a concert are all possible activities in the South Hall which

will determine when it’s open.

Madison Public Market Business Plan

Updated: October 2020

There are many other options available, like keeping different

hours depending on the season. Whatever Market management

decides, the schedule must be clearly communicated to the

public.

Pro Forma

The capital costs needed to build the Public Market are examined

separately and identified in the budget provided earlier in this

document. The pro forma looks at the operating costs and

revenues of the project. The primary source of revenue to the

Public Market will be renting spaces to vendors and tenants.

Some revenue will also come from events and perhaps ongoing

sponsorships. The primary expenses will be the day-to-day and

year-to-year costs of running the market – staffing, maintenance,

etc. Though the Madison Public Market will be a place where the

individual small businesses in the market can succeed, earn profits,

and support their families, the market itself will be operated by a

non-profit and is not expected to turn a profit from its operations.

One of its goals, however, is to achieve operational sustainability

with revenues roughly equal to expenses.

This pro forma shows rent and expense levels that will enable the

market to break even operationally by year four. The cumulative

operating losses for the first few years are included in the start-up

costs and have been factored into the capital costs to develop

the market.

Income Sources

The goal of the Public Market is to achieve a break-even point

where incomes cover operational costs. It will take a few years to

achieve this break-even, so the capital budget includes operating

capital to cover losses during the first three years. The City, the

PMDC, and the Foundation, are confident that the market will be

financially viable in the long run. A key factor to achieving this is

that the Public Market will not have a debt service payment on its

capital. As described previously, the project’s capital will come

from the City, state/federal grants and tax credits, and donations.

This will allow the market to operate debt-free with no debt

services payment.

Vendor Rents

The majority of the market’s income will come from rents charged

to tenants. The ability of vendors to pay rent will be driven by

sales. As such, the core essential ingredient to the success of the

Madison Public Market Business Plan

Updated: October 2020

Public Market is that it includes sufficient gross leasable area (GLA)

and generates sufficient and consistent traffic for the businesses in

the space.

Rent structure for the Public Market will be somewhat different

from a traditional retail space. Within the Public Market, vendors

will just rent their individual spaces and will not pay for aisles,

bathrooms, service areas, entrance vestibules, etc. Because of

this, each vendor will rent a relatively small space, but the rent per

square foot will be relatively high.

Rents will also vary by vendor type. Some tenants will be required

to pay more and some less. In general, rent rates are higher for

tenants who sell more prepared foods, which have a higher sales

margin. Tenants who only sell fresh foods will likely pay a lower rent.

Other businesses may be hybrids, offering prepared foods as well

as fresh food.

Common Area Maintenance

CAM is the portion of the operating costs that are rebilled directly

to public market tenants to allow the project to break even. CAM

is standard in nearly all public markets today; most markets pass

through a portion if not all of their common area charges in one

way or another. In some markets the base rents cover the

common area and/or all expenses to operate the market. The

common area charge should be adjusted annually based on

actual expenses, and each year these charges should be

adjusted in the tenants’ use agreements. For instance, if garbage

costs or utility rates rise, additional expenses should not be borne

by the Foundation.

Rent Starting Point (“10-10-5” Benchmark)

The Public Market will use a hybrid rent structure that includes a

base rent per square foot, a base Common Area Maintenance

(CAM) charge per square foot, and a percentage of sales. The

base rent is to provide a somewhat stable source of revenue for

the operating entity, the CAM will vary year-to-year and cover

various operating and marketing costs, and the percentage rents

will create a mechanism to ensure that rents are somewhat

related to sales and therefore proportional to each vendor’s ability

to pay.

The Foundation will work with each vendor to negotiate use

agreements. The rent structure will need to be sensitive to the

differing sales volumes of different types of vendors, while also

Hybrid Rent Structure

(“10-10-5”)

As the project gets

closer to construction,

The Public Market

operator will negotiate

leases with each

individual vendor and

each one will be

different.

The overall structure

will be a hybrid of a

base rent per square

foot of occupied

space, a Common

Area Maintenance

fee, plus a percentage

of sales.

As a starting point, the

Public Market will

establish a benchmark

of 10/10/5.

Base Rent: $10/SF

CAM: $10/SF

% of Sales: 5%

Madison Public Market Business Plan

Updated: October 2020

ensuring that the facility earn sufficient revenue. As with any

commercial leasing process, the operator will need to negotiate

specific terms that are unique to each individual business. The

terms, conditions, timeframes, improvement stipends, rents, and

other factors will vary from one use agreement to another.

How this Rent Structure Will Work for Vendors

As noted, each vendor will negotiate its own use agreement with

the PMO. The “10-10-5” benchmark is simply a starting point for

those discussions.

Based on the previous version of the business plan, analysis of

commercial real estate in Madison, and ongoing and detailed

conversations with potential vendors, the “10-10-5” benchmark is a

viable starting point for developing rent estimates for the project

pro forma.

The following chart examines how this rent structure impacts three

different types of Public Market businesses.

Gross Leasable Area (GLA)

The final floor plan of the Public Market is still being designed. The

precise number and size of vendor stalls is still being determined.

The current configuration includes 30 individual vendor stalls

ranging in size from 80 Square Feet to 2,000 square feet. The total

anticipated GLA of stalls is approximately 15,000 square feet.

Madison Public Market Business Plan

Updated: October 2020

Examples of How Operating Structure and Rents will Work for Businesses

Business

Large Bakery

Mid-Size Butcher

Shop

Small Produce

Vendor

Description

Large bakery with

production facility in

back and retail

storefront in front

Butcher shop with a

large counter

offering a wide

range of locally

sourced meats

Small vendor selling

locally-grown

produce or food

product from a small

market stall

Square Feet of Leased

Space

2,000

500

100

Annual Sales PSF

$400

$600

$750

Total Annual Sales

$800,000

$300,000

$75,000

Average Daily Sales

$3,077

$1,154

$288

Base Rent ($10 PSF)

$20,000

$5,000

$1,000

CAM ($10 PSF)

$20,000

$5,000

$1,000

Percentage Rent (5%)

$40,000

$15,000

$3,750

Total Rent

$80,000

$25,000

$5,750

Total Rent as % of

Sales

10%

Effective rent PSF

$40

$50

$57.5

Representative examples of businesses who are among the 200 that have

completed the project’s vendor interest questionnaire

Conservatively reflects size of space vendors are seeking

Conservative estimate based on comparable sales volumes for retail space,

loosely based on Urban Land Interest’s “Dollars and Sense of Retail Trade Report”

Based on 260 operating days per year

Effective rents/SF each vendor will pay. Rates are well above market price but

include the use of common areas

Madison Public Market Business Plan

Updated: October 2020

Other Sources of Income

South Hall and Storage Facilities (Food Innovation Center)

The South Hall encompasses a 6,700 square foot space that

provides space for light manufacturing, product storage,

aggregation, and packing and sorting. Additionally, there is about

2,987 square feet of dry, cold, and freezer storage space that is

available for users.

Revenue is generated through licensed use of space and

equipment. Licenses are offered on variable terms for different

user bases.

Additionally, income is anticipated from large users (e.g. REAP

Food Industry Job Training Programs) that will negotiate an annual

contract for use of the facilities.

Market Kitchen (Food Innovation Center)

The Market Kitchen will be a 1,200 square foot commercial grade

kitchen space that is centrally located within the market. The

physical space will include food-prep stations; and central

cooking area with a range, ovens, and other equipment, a dish

area with sinks, dishwasher, and storage; cold and freezer storage

space, several hand washing stations, and other features. The

kitchen is designed to serve several needs at the market included

food preparation for vendors, cooking classes and events,

catering for events, workforce training programming, and food

product development and testing. The location of the Market

Kitchen is adjacent to the event space and includes a pass

through window into the south hall to facilitate its use for events.

The space is centrally located on the first floor of the market near

the loading area and close to most permanent merchant sites.

The Market Kitchen will provide some operating revenue to the

overall facility. The primary users of the Market Kitchen space will

be the clients of the FIC. These businesses will have an option to

pay an add-on annual fee that will give them access to a certain

number of hours within the Kitchen and access to storage and

cooler space. This fee will vary based on level of usage. The City

anticipates that additional businesses and organizations will use

the Market Kitchen for events, classes, training programs, etc.

They will pay fees based on usage. As noted previously, the

Market Kitchen is designed for flexibility and a wide range of uses.

Most of the equipment including the food prep stations will be

mobile. The central cooking zone of the kitchen will include a

Madison Public Market Business Plan

Updated: October 2020

In May of 2019, The City of Madison Hosted a Community

Event to provide a "sneak Peak" of the Market space.

Attended by over 1,000 people, the event highlighted the

market's potential as a unique community event space.

variety of equipment. In addition to serving the core needs of the

market as a prep kitchen for vendors and catering kitchen for

events, the Market can host cooking demonstrations, nutritional

classes, high school culinary programs, etc. The programing of the

Market Kitchen will require careful scheduling and management

by the market staff. It has the potential to be a significant

supplementary revenue source for the Market Operations.

Event/Meeting Rents

The location, design and layout of the Market offer myriad

opportunities for meetings and events, including the South Hall, a

large open area on the mezzanine level, small seating areas in the

Market Hall and Entry Hall, and several unique outdoor areas.

These multiple spaces suitable for a variety of events and meetings

create an important opportunity to bring additional revenues to

the market. Likely events include winter farmers markets, pop-up

markets, holiday markets, maker fairs, craft markets, etc. In

addition, the Public Market will become a home for banquets,

weddings, and other community events. The management of the

Public Market will oversee marketing and management of the

Public Market space for events.

The main event space within the Market will be the South Hall. This

space will be able to accommodate events with up to 300 seated

guests. The space will be unique, open, clear space that is flexible

and usable for a variety of events. These

spaces will be perfect for larger

weddings, non-profit dinners, concerts,

winter movie series, panel discussions,

pop-up markets, food cart rallies, and the

list goes on.

In addition, the market will include a large

mezzanine area that can be reserved for

mid-sized community events, as well as

smaller space and outdoor areas that

can host a variety of small events.

The City and the Foundation have

conducted focus

groups with local

event organizers

and have

studied the event

market. This analysis suggest the potential for event fees to

Madison Public Market Business Plan

Updated: October 2020

provide a significant share of the market’s revenue needs. The pro

forma uses conservative assumptions.

Outdoor Rents

Outdoor markets and events can include farmers markets, flea

markets, food cart rodeos, craft markets, specialty markets and

events.

Sponsorships and Memberships

The Foundation is exploring the idea of offering ongoing yearly

sponsorships for programs and features of the Public Market. The

Foundation is also exploring the concept of an annual market

membership with community members can join the Public Market

for an annual fee. In exchange, members would be provided with

discounts on certain products at the market, invitations to special

events, exclusive tastings with new vendors, etc. The membership

program would help bring venue to the Public Market and

strengthen connections to supporters and community members.

Expenses

As stated previously, the Public Market’s goal is to break even, with

operating revenues sufficient to cover operating expenses

(including built-in capital reserve fund). These explanatory notes

correspond with the expense line items on the pro forma.

Personnel

The Public Market Foundation will hire its Executive Director in 2020.

As the market opening gets closer, the Foundation will staff up with

additional personnel needed to run the facility. The staff will

consist of the following:

Public Market Foundation Executive Director – This person has

overall responsibility for the Market’s operations and finances.

She/he will also be the liaison to the Board of Directors and

oversee all reporting and communications that emanate from the

market. The Executive Director will also oversee all other market

personnel. The market’s Executive Director has many duties that

include meeting with tenants, overseeing leasing/merchandising,

spending time on the market floor and getting to know the

customers and the community.

Operations Manager – The Market Operations Manager will

oversee the physical plant of the facility and much of the day-to-

Madison Public Market Business Plan

Updated: October 2020

day operations of the market including scheduling deliveries,

managing set-ups by vendors

Facility Manager – The Facility Manager will be responsible for the

building’s physical plant. This work will include overseeing

maintenance contracts, handling utilities, managing mechanical

equipment, managing access controls, and keeping the building

running properly.

Events Coordinator – The Events Coordinator will manage all Events

at the Market. This position will plan and manage all events and

meeting rentals and will take the lead with public relations and

advertising.

Marketing and Outreach Coordinator – This position will oversee

the market’s promotions, programming and outreach efforts. This

person would also be the contact for any future or ongoing

fundraising.

Food Innovation Center Manager – This position will be the primary

point of contact with FIC clients and will manage day to day

activities. The FIC Manager will also have a strong background in

food manufacturing with Better Process Control and HACCP

Managers certificates. Initially this function will be incorporated

within the duties of the operations or facilities manager positions.

Maintenance – These positions reports to the Operations Manager

and is responsible for building maintenance. These positions are

supported by maintenance contracts.

FIC Custodial and Support Staff – These staff will support the FIC

Manager in day-to-day operations and will be responsible for set-

up and break-down of flex use areas and general cleaning,

sanitation, and equipment maintenance required to maintain a

satisfactory food manufacturing environment.

Clerical – This position has responsibility for running the office and

handling all billings/receivables. S/he will assist the Executive

Director with budgets, forecasts and reports. Clerical support will

also be provided to the FIC for scheduling and billing.

Teamwork is crucial to the success of the Public Market. Each role

will have a job description that outlines the primary responsibilities

for each individual; however, for the Market to succeed everyone

will need to pitch in when and where help is needed. The Public

Market Executive Director and staff will need to be a creative,

flexible, organized, and innovative team of problem solvers who

Madison Public Market Business Plan

Updated: October 2020

are ready to take on a unique challenge on behalf of the Public

Market Foundation, the vendors, and the Madison community.

Non-personnel Costs

Advertising – This limited advertising budget will cover costs for

social media, print, and possibly some radio/television advertising.

The Public Market should focus on grassroots marking efforts

through social media channels, word-of-mouth, relationships with

media, and volunteer efforts.

Office/Legal/Professional Services – These are normal expenses to

run the office and would include phone, internet, office supplies,

and other standard costs. This line item may vary year to year. The

Board of Directors may receive pro bono assistance.

Insurance – This line item covers general liability and property

insurance. Tenants will be required to carry their own

comprehensive general liability insurance naming the market’s

management entity and the City as additional insured parties.

Fees/Permits – This is for local, state and federal permits. As a city

facility, some local permits could potentially be waived.

Net Utilities – The market management will work with tenants on a

utilities plan. Some tenants will be metered and billed for

individual usage while others will pay a surcharge on their rent for

the building’s utilities.

Garbage – There will be a central area where tenants take their

garbage and items for recycling. These costs are for hauling fees

and all other expenses associated with the removal of waste or

recycling. This estimate is based on engaging a waste hauling

contractor for this service. There may be cost savings if this item is

consolidated in the City’s other ongoing waste hauling contracts

for facilities.

Maintenance and Repair – The building will be new when the

market opens. This item will cover routine repairs and

maintenance

Supplies – This line item is for cleaning supplies, bathroom items,

trash cans, and other janitorial needs.

Capital Reserves – The Public Market will build a capital reserve

fund into its operations. This fund will build over time to cover the

costs of long term needed capital improvements.

Madison Public Market Business Plan

Updated: October 2020

Madison Public Market Operating Pro Forma Updated: 10/01/2020

OPERATING ASSUMPTIONS VACANCY RATES

Operating Months per Year 12 Year 1 15%

Operating Days per Month 25 Year 2 15%

Operating Days per year 300 Year 3 15%

Est Total Sales at Stabilization $10,000,000 Year 4 15%

Fringe Benefits (%) 25% Year 5 15%

Cost Inflation Rate 2%

EVENT RENTALS Events per year Cost per event Event revenue

South Hall 52 $2,000 $104,000

RENTS & CAM Community Room/Mezz 24 $400 $9,600

Rent Growth 2% Whole Facility 3 $10,000 $30,000

Ave Storefront Rent PSF $37 - $0

Average Sales PSF GLA $648 $0

Storefront GLA 15,440 $143,600

CAM PSF $12

Average Rent+CAM as % Sales 7.6%

Food Innoavtion Center Year 1 Year 2 Year 3 Year 4 Year 5

DAY STALLS Public Market Businesses 31,800$ 34,980$ 41,340$ 44,520$ 44,520$

Daystall Daily Fee $75 Other business users 54,000$ 59,400$ 70,200$ 75,600$ 75,600$

Daystall uses per day 2 Training Programs 17,500$ 19,250$ 22,750$ 24,500$ 24,500$

Daystall uses per year 600 Food Processing 17,500$ 19,250$ 22,750$ 24,500$ 24,500$

Daystall rev per year 45,000 Occupancy & Scale Up 50% 55% 65% 70% 70%

120,800 132,880 157,040 169,120 169,120

INCOME YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Permanent Stall Rents 571,280$ 582,706$ 594,360$ 606,247$ 618,372$

Common Area Maintenance 185,280$ 188,986$ 192,765$ 196,621$ 200,553$

Day Stall Rents 45,000$ 45,900$ 46,818$ 47,754$ 48,709$

Event Revenue 21,540$ 71,800$ 73,236$ 74,701$ 76,195$

Liquor Revenue 25,000$ 30,000$ 35,000$ 45,000$ 45,900$

FIC Revenues 120,800$ 132,880$ 157,040$ 169,120$ 169,120$

Ongoing Fundraising 5,000$ 5,100$ 5,202$ 5,306$ 5,412$

Vacancy Loss (113,484)$ (115,754)$ (118,069)$ (120,430)$ (122,839)$

TOTAL INCOME 860,416$ 941,618$ 986,352$ 1,024,319$ 1,041,422$

EXPENSES

Personnel YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Executive Director/ FIC Manager 80,000$ 81,600$ 83,232$ 84,897$ 86,595$

Operations Manager 70,000$ 71,400$ 72,828$ 74,285$ 75,770$

Events Coordinator 32,500$ 33,150$ 33,813$ 34,489$ 35,179$

Marketing/Outreach Coordinator 65,000$ 66,300$ 67,626$ 68,979$ 70,358$

Maintenance 50,000$ 51,000$ 52,020$ 53,060$ 54,122$

Custodial 50,000$ 51,000$ 52,020$ 53,060$ 54,122$

Admin Assistant / Bookkeeper 45,000$ 45,900$ 46,818$ 47,754$ 48,709$

Fringe 98,125$ 100,088$ 102,089$ 104,131$ 106,214$

Total Personnel 490,625$ 500,438$ 510,446$ 520,655$ 531,068$

Non-Personnel YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Advertising/Events 30,000$ 30,600$ 31,212$ 31,836$ 32,473$

Food Safety Consultant 10,000$ 10,000$ 10,000$ 10,000$ 10,000$

Property Taxes 40,000$ 41,200$ 42,436$ 43,709$ 45,020$

Legal/Professional 25,000$ 25,500$ 26,010$ 26,530$ 27,061$

Insurance 25,000$ 25,500$ 26,010$ 26,530$ 27,061$

Fees/Permits 5,000$ 5,100$ 5,202$ 5,306$ 5,412$

Net Utilities (electric/gas/water) 120,000$ 122,400$ 124,848$ 127,345$ 129,892$

Garbage 30,000$ 30,600$ 31,212$ 31,836$ 32,473$

IT 15,000$ 15,300$ 15,606$ 15,918$ 16,236$

Maintenance/Repairs 12,000$ 15,000$ 15,300$ 15,606$ 15,918$

Supplies 25,000$ 25,500$ 26,010$ 26,530$ 27,061$ low

Capital Reserves 10,000$ 10,200$ 10,404$ 10,612$ 10,824$

Snow Removal 15,000$ 15,300$ 15,606$ 15,918$ 16,236$

Landscaping 2,000$ 5,000$ 5,100$ 5,202$ 5,306$

Community Programming 5,000$ 5,100$ 5,202$ 5,306$ 5,412$

Total Non-Personnel 369,000$ 382,300$ 390,158$ 398,186$ 406,386$

Contracy Events & FIC

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Total Income 860,416$ 941,618$ 986,352$ 1,024,319$ 1,041,422$

Total Expenses 859,625$ 882,738$ 900,604$ 918,841$ 937,455$

Net Operating Income (NOI) 791$ 58,880$ 85,748$ 105,478$ 103,968$

Seed Money 100,000$ 100,000$ 100,000$

Funds From Operations 100,791$ 158,880$ 185,748$ 105,478$ 103,968$

Stabilized Events Net Income (35% year 1); (50% year 2)

Madison Public Market Business Plan

Updated: October 2020

Part 10: Market Analysis and

Marketing Strategy

Market Analysis and Marketing Strategies

The Madison Public Market promises to be a colorful, bustling

marketplace that will become one of Madison's most treasured

public spaces. Over the last five years, the City has done extensive

analysis of the project’s market potential. This includes a variety of

surveys, focus groups, resident panels, and other forms of

engagement and analysis. The City also engaged with a variety

of food system experts, food businesses, and other stakeholders to

study the potential of the public market and gain insights into

strategies to position the project to be successful.

Market Analysis Highlights

Below are a few key findings from the City’s vendor surveys,

community surveys, site analysis, gravity model, and other research

methods.

 There is a history and strong base of food-related

employment in Madison. About 32,000 people in Dane

County are employed in food-related businesses including

agricultural businesses, manufacturing, wholesaling, retail,

and food service.

 Madison has many existing strengths in the local food

sector. Madison is already a national leader in the local

food industry. This is evidenced by Madison’s successful

farmer’s markets, renowned farm-to-table restaurants,

community grocery co-ops, local food programs at

conventional grocery stores, high participation in

Community Supported Agriculture (CSA) programs,

numerous community gardens, vibrant food cart scene,

etc. This is a dynamic and growing economic sector in

Madison. Unlike some communities, Madison’s residents

are already engaged in local food and primed for the

Public Market experience. The Public Market needs to be

positioned to complement and amplify Madison’s existing

assets and projects.

U.S. Bureau of Labor Statistics, Madison Region Economic

Partnership (MadREP)

Madison Public Market Business Plan

Updated: October 2020

 The region’s food businesses are doing well. 80% (68 out of

84) of vendor survey respondents reported that their sales

have increased in the last five years.

 There is a strong base of permanent fresh and prepared

food vendors interested in the market to expand their retail

opportunities. The number of attendees at the vendor

focus groups and open houses revealed a high level of

interest among potential Public Market vendors. This is

supported by data from a vendor survey which showed

that 82% (75 out of 92) of survey respondents are,

“interested to very interested” in locating or doing business

at a public market in Madison. Over 140 interested

vendors have completed the City’s recent vendor interest

questionnaire, providing detailed information on how they

envision doing businesses in the space. In many cities, the

key challenge with Public Markets is finding enough

vendors. In Madison, the challenge will be choosing

among the large pool of vendors who are interested.

 Madison has an extensive CSA network. 25% of the

community survey respondents were CSA members. This

existing interest in CSAs bodes well for interest in the Public

Market. The Public Market will look for partnership

opportunities with CSA farms, such as hosting a drop-off

point, providing trading programs, hosting info sessions, etc.

 There is a high participation rate of shopping at farmer’s

markets. 81% of the public survey respondents had visited

the Dane County Farmers Market at least once last year.

The Public Market should strive to partner with the Dane

County Farmers Market on programming.

 Shoppers at grocery stores showed a strong interest in local

foods. 53% of community survey respondents said a good

selection of locally grown or produced products greatly

influenced where they shop for food and 35% said the

selection of specialty and ethnic foods strongly influenced

where they shopped.

 The site benefits from high visibility. The section of East

Washington Avenue in front of the Public Market has

approximately 50,000 vehicles per day. The section of First

Street north of East Washington has approximately 20,000

Vehicles per day and the section of First Street south of East

Washington has approximately 11,000 vehicles per day.

This makes the Public Market location one of the highest

visibility commercial intersections in Wisconsin.

Wisconsin Department of Transportation

Madison Public Market Business Plan

Updated: October 2020

 Transit service. The site is served by 10 bus routes. On

weekdays, 222 busses per day serve the site. On

weekends, 33 busses per day serve the site.

 Proximity to highway system. The site is a 4-minute drive

(1.57 miles) from the intersection of East Washington and

Highway 30, providing excellent access to the regional

limited-access highway system. The site is 7 minutes (4

miles) from the Interstate 39/94/90 interchange.

 Gravity model results. City commissioned a “Huff Gravity

Model” analysis to evaluate different locations for sales

potential. Based on population density and spending

patterns of people within different travel time distances to

the site, the analysis estimated that the selected site for the

Public Market could achieve $12 to $14 million in annual

sales (just in food to take home). With prepared foods

included, the City anticipates total average annual sales of

$16 to $20 million.

Trade Areas

Based on this analysis, the Public Market anticipates drawing from

four trade areas:

1. Neighborhood Market – People living or working within a ½

mile radius

2. Local Market – People living within a 10-minute drive time

3. Regional Market – Residents of Dane County

4. Destination Market – Tourists, convention-goers, and other

visitors

For each of these trade areas, the Public Market will achieve a

varying level of market penetration (the % of people who visit), a

varying frequency of visits, and a varying average expenditure per

person. These factors (the number of people who visit, how often

they come, and how much they spend) are the fundamental

factors that will drive the revenue of the market. The following is a

summary of each of the four trade areas and a few strategies to

attract visitors from each one. At the end is a summary table with

estimated visitation and spending for each trade area.

Project for Public Spaces Analysis, 2014

Madison Public Market Business Plan

Updated: October 2020

Trade Area 1: Neighborhood Market (1/2 Mile

Radius)

The Neighborhood Market is defined by a ½-mile radius around

the site. This area has a current resident population of 5,210, and

includes 260 businesses with 2,829 total employees. This area

touches many neighborhoods of the City including Emerson East,

Tenney-Lapham, Marquette, Schenk-Atwood, and Sherman

Terrace. This is an economically diverse part of the City that

includes a wide range of housing types and personal incomes.

Portions of this area are low income and portions are in areas

identified as food access challenged. At the same time, the area

also includes multi-million dollar lakefront homes and a wide range

of middle-class households. These neighborhoods are some of the

most densely populated areas of Madison and include residents

that prioritize sustainable, local food choices. This population mix in

a relatively high-density environment will help the Public Market be

successful.

The site is also located at the capstone of the dynamic Capitol

East District. The Capitol East District (E. Washington Avenue

corridor between First Street and the Square) is one of the fastest

growing parts of Madison, with new, thriving entertainment,

housing, and business opportunities that will drive visitors to the

Market. The City recently commissioned a study to project future

development activity in the Capitol East District. Based on the

City’s adopted plans and current growth trajectory, this report lays

out projected growth in the Cap East District. Based on these

projections, the Capitol East District will likely add over 2,000

apartment units and approximately 2.5 million square feet of

commercial space over the next two decades. This will bring over

5,000 new residents and new employees to this district.

The City anticipates that this transformation of the Capitol East

District will continue. Many people moving into this corridor to live

or to work are younger residents from high tech firms such as

Google, Shop Bop, Epic, Zendesk, and others. The Public Market

will be a prime shopping choice for millennials, catering to this age

group’s preferences for authentic, local, and unique food choices

within walking and biking distance.

Marketing Strategies for Trade Area 1:

A few key strategies to ensure that the neighborhood market

regularly visits the Public Market include the following:

Madison Public Market Business Plan

Updated: October 2020

 Ensure that the design provides excellent bike and

pedestrian access

 Create strong connections to neighborhood institutions

such as East High School, other schools, churches,

neighborhood associations, etc.

 Provide space in the Public Market that can be used for

neighborhood events

 Coordinate with developers and property owners of the

large apartment buildings in the Cap East District. Provide

welcome-to-the-neighborhood coupons or gifts to let new

residents know about the Public Market.

Trade Area 2: Local Market (10-minute

drive time)

The Local Market is defined as the population living within a 10-

minute drive time of the Public Market. Currently, there are

173,282 people, including 48,974 households living within this 10-

minute drive. In 2014, the City of Madison conducted a survey of

2,083 people, mostly City

of Madison residents.

When asked how far

someone would travel to

visit the market, 97%

answered up to 10 minutes

while 79% stated they

would travel up to 15

minutes.

The 10-minute drive time

area also includes several

major employment areas.

Most notably, the Capitol

Square is 18-blocks away.

This proximity to Madison’s

core central business

district creates some opportunity to capture a weekday business

lunch audience, but this will require strategies that draw people to

the site.

Marketing Strategies for Trade Area 2:

A few key strategies to ensure that the Local Market regularly visits

the Public Market include the following:

 Provide programs and services that help connect

downtown employees to the Public Market as a lunch

Madison Public Market Business Plan

Updated: October 2020

option. For example:

o Lunch shuttle in partnership with downtown hotels

o Partnership with Madison BCycle and a station at

the Market

o Weekday lunch specials

o Partnerships with online delivery services such as Eat

Street

 Provide a detailed and user-friendly Public Market App with

real time information on what’s available at the market,

what vendors are there, hours of operation etc.

 Ensure the Public Market has adequate short-term, drop-in

parking for local residents interested in stopping in to grab

a quick item.

 Focus on making the Public Market easy and convenient

for local residents to use.

Trade Area 3: Regional Market (Dane

County)

The third trade area is the Regional Market, defined as Dane

County. Dane County’s current population is approximately

520,000. The Public Market site can be reached by almost all

residents of the County within 30 minutes. In the 2014 market

analysis survey conducted by the City of Madison, 95% of the 2,083

survey respondents said they would go to a Public Market if

Madison had one. The responses to this survey came from

residents who live in 78 different zip codes spread across the

region. Though the most frequent visitors to the Public Market will

be neighborhood (1/2 mile radius) and local (10-minute drive)

markets, residents of Dane County and the larger region will visit

for the unique experiences the market offers.

With the variety of activities and events happening at the Market,

people from across the region will visit. Just as the Dane County

Farmer's Market has become a beloved destination, so too will the

Madison Public Market. While the Neighborhood Market and the

Local Market will visit the Public Market more often for day-to-day

needs, residents of the Regional Market will tend to visit the Public

Market for the overall unique experience, the delicious food, the

connection to local farmers and the gathering space.

New entertainment venues in the E. Washington corridor will bring

thousands of people from across the region to the Public Market

area. Breese Stevens Field increases the events and attendance

levels every year. The new Frank Productions space will regularly

bring 2,500 people to the corridor for evening shows and

entertainment. Thousands will be looking for nearby food and

Madison Public Market Business Plan

Updated: October 2020

beverage options. As the corridor grows, so too will entertainment

opportunities that will help drive people to the Market from across

Dane County and south-central Wisconsin.

Anecdotally, most Madison residents would agree that there are

not enough winter events and year-round destinations. Many

comments collected over the years of Public Market information

meetings revolved around the need for the Public Market as an

opportunity for more activities during the colder months. With

50,000 square feet of space, of which 3,000 will be dedicated to

temporary event space, there will always be something new and

interesting to see or experience at the Public Market during every

month of the year.

Marketing Strategies for Trade Area 3:

For the Regional Market, the focus should be on a special events

and activities that keep the market fresh, interesting, and a

worthwhile weekend or evening destination. To attract residents

who live in the Madison area but not in the immediate proximity of

the Public Market, the Public Market needs to offer ever-changing

unique experiences and special products that make it fun and

interesting. Strategies include:

 Program a range of seasonal events that focus on the

product at the market. The Public Market will be active

and changing year round. It should have a specialty

locally-made chocolate event for Valentine’s Day, a flower

market for mother’s day, workshops on grilling local for

Memorial Day and July 4, a pumpkin-carving event and

Oktoberfest beer in October, an event focused on locally-

raised Turkeys at Thanksgiving, and a Christmas Market in

December.

 The Public Market will also have summer music events that

link the Public Market to Burr Jones Park, as well as boat-in

events that entice people to dock their boats in the River

to go the market.

Again, the core focus to attract people from around Dane County

is making the Public Market a special destination with unique

products, a variety of events, and an atmosphere that can’t be

found anywhere else. For regional visitors, the Public Market

should be a familiar and comfortable place where you know you

can always get that special item you love, but it should also

always provide something new and surprising that makes you

want to go back.

Madison Public Market Business Plan

Updated: October 2020

Trade Area 4: Tourists and Visitors

The Madison Public Market site is well situated to attract out-of-

town tourists. Close to the Dane County Regional Airport, Interstate

94 and 39/90, and John Nolen Drive, the Public Market offers easy

access to those visiting the area.

The Madison Public Market Development Committee and the

Madison Public Market Foundation are working to create a Market

that is a showcase for Madison's local food culture. Currently, we

have a thriving local food scene that visitors want to experience

when they travel to our region. However, there is not one central

location where our local food culture can be experienced and

celebrated. The Madison Public Market will be a promoter of our

local dairy industry, local agriculture, and locally made food

products. The Market will also be a hub for locally made art and

hand-made goods.

The Public Market will offer out-of-town guests a variety of activities

that will help drive tourists to the site. Some of these activities that

will appeal to visitors are:

 Wisconsin Dairy and Cheese pavilion inside the Market that

will offer an interactive dairy exhibit, dairy merchant

vending stalls, and retail store. Visitors will learn about our

region's dairy history, meet cheese-makers, taste cheese,

ice cream, and other dairy samples, and purchase a

variety of local cheeses and other dairy products.

 Stories of how our region was shaped by a variety of

different cultures and their food histories.

 Beautiful local artwork

 Outdoor seating, live music and other outdoor events

 Pop-up markets and events such as food fairs, craft fairs,

and other unique events

 Nearby Burr Jones Field and Yahara River for picnics in the

park and canoe rentals

 Bcycle station to explore the bike paths leading from the

Market

 And of course... 30+ local food vendors offering multi-

cultural, delicious food to eat at the Market or purchase as

a souvenir

When visitors want to have a truly Madison experience and

understand an important piece of our local culture, the Madison

Public Market will be a “must stop” destination. Though the primary

Madison Public Market Business Plan

Updated: October 2020

goal of the Public Market is to serve residents, it will also become a

visitor destination.

To understand the annual visitor total, other Public Market

attendance totals were reviewed in addition to analyzing the total

visitor counts of other Madison destinations. The table below shows

recent annual visitor totals for a few key visitor destinations in

Madison.

Destination

Annual

Visitors

Overture Center

506,000

Monona Terrace

350,300

Kohl Center

1,030,000

Memorial Union

3,650,000

Dane County Farmer's Market

497,500

Children's Museum

243,000

Olbrich

250,000

Henry Vilas Zoo

975,000

Alliant Energy Center

1,000,000

Marketing Strategies for Trade Area 4:

The Public Market has the potential to contribute to Madison’s

growing success as a visitor destination that helps attract visitors to

Madison by showcasing part of what makes Madison special. For

the Visitor Market, a key focus will be collaboration with

community partners to make the Public Market a “must-see” stop

for Madison visitors.

 Collaborate with the Greater Madison Convention and

Visitors Bureau to make the Public Market part of its

strategy to recruit events and visitors. The Public Market

could become one of the places in Madison that helps

“sell” the city to event planners looking for destinations for

conventions and conferences.

 Work with organizations and businesses like Madison Eats

Food Tours to host Public Tours

Madison Central Business Improvement District, Make It Downtown

Madison, 2012

Madison Public Market Business Plan

Updated: October 2020

 Coordinate with the Monona Terrace, Alliant Energy

Center, and other event facilities to make the Public

Market a destination that event-goers can add to their list

of things to do while in Madison

 Connect with the Dane County Regional Airport to have

flyers and displays at the airport encouraging visitors to see

the Public Market. The market’s strategic location midway

between the airport and downtown is important.

 Connect with the UW Madison to make the Public Market a

place that visiting families of students may want to see.

Work with the Athletic Department and local businesses to

Make the Public Market a potential game-day destination

with parking and shuttles to Camp Randall and the Kohl

Center

 Do some target marketing to residents of Chicago,

Milwaukee, and the Twin Cities to add the Public Market as

a reason to make Madison a weekend getaway

destination.

Summary of projected visitation and total spending

Based on the research of the market and four trade areas

described above, the following table summarizes anticipated total

visitation to the Public Market and anticipated total revenues

generated from each trade area.

Madison Public Market Business Plan

Updated: October 2020

Trade Area

Trade Area 1

Trade Area 2

Trade Area 3

Trade Area 4

Neighborhood

Market (1/2 Mile

Radius)

Local Market

(10-minute

Drive Time)

Regional Market

(Dane County)

Visitor/

Tourist

Market

Population

7,993

101,582

422,061

Estimated Penetration (%

population coming to the

market at least once per

year)

75%

50%

25%

Number of visitors

5,995

50,791

105,515

100,000

Estimated average visits

per year

Total visits

89,921

253,955

211,031

100,000

Estimated average

spending per visit

$30

$20

Total estimated revenue

$2,697,638

$7,618,650

$4,220,610

$2,000,000

Total Visitors (individuals coming to the Public Market)

262,310

Total Visitation (total unique visits including repeat visitors)

654,907

Average spending per visit

$25

Total Revenue

$16,536,898

Part 11: Community &

Economic Impacts

Madison’s Public Market will have a substantial economic impact

by creating jobs, promoting local farmers, developing new

businesses, catalyzing redevelopment, and providing a large

group of people an opportunity to start a business.

Estimated Sales – As noted previously, the total annual sales at the

Public Market are estimated to be approximately $16 million. The

PPS Huff Gravity Model analysis estimated $12 million in sales in the

category of “fresh food to take home.” With additional sales for

prepared foods eating on site, drinks, arts/crafts, and other things

sold at the Public Market, the total sales should meet or exceed

the $16 million estimate.

Job Creation – The Public Market will open with approximately 30

permanent tenants. The market will also offer a variety of

temporary and pop-up vending opportunities. In addition to

vendors, the market will have its own staff, a variety of businesses

using the Food Innovation Center space, and event activity.

Based on the PPS analysis, the total estimated employment at the

market will be 100 FTEs.

Entrepreneurial Opportunities – The market will offer a unique

opportunity for entrepreneurs to build a business in a small space.

Many will be first-time business owners testing a concept and

taking advantage of the market’s unique ability to generate foot-

traffic. Through the MarketReady Program, the City and its

partners are already working to ensure that the Public Market fulfills

its mission of creating a platform for diverse entrepreneurship in

Madison.

Business Growth – Over time, some startup businesses at the Public

Market will grow and move into different types of spaces. This

includes vendors moving into a more traditional storefront space,

or food product makers scaling up to a larger production facility in

an industrial area. The goal is that some businesses develop

concepts and products that grow into national brands.

Regional Food Economy Growth – The Public Market is a regional

economic development project. The project has benefitted from

the strong support of the leadership of Madison Region Economic

Partnership (MadREP), who recognizes the Public Market’s

Impact

Summary

$16 - $20 million

in sales

35 new

businesses

launched

100 Jobs at the

market

$22 million regional

impact

265 regional jobs

created

$29 million in

private investment on

the site

$200 million in

redevelopment

potential in the

immediate area

potential to connect and help grow the region’s urban and rural

economies. Using regional economic multipliers provided by the

U.S. Bureau of Economic Analysis, the conservative estimate of $12

million in fresh food sales will generate a regional impact of $21.9

million and lead to 265 full and part-time jobs.

Catalyst for Redevelopment – The Public Market is a critical site in

the City. It is on the eastern edge of the burgeoning Capitol East

District, but within an immediate area that has struggled to see

significant redevelopment activity. The transformation of the site

will spark additional private development investment in this area of

the City, creating more jobs and tax base for the City.

Visitor Draw – One of the things that makes Madison an interesting

and attractive destination is the City’s vibrant food culture and

food offerings. More and more, authentic local food experiences

are becoming a driver for tourism and visitation to communities.

The Public Market will help attract visitors and foster repeat visits.

The City of Madison and Public Market Foundation look forward to

working with community partners including Destination Madison,

Alliant Energy Center, Monona Terrace, local hospitality businesses,

and others to integrate the Madison Public Market into Madison’s

unique portfolio of visitor offerings.

Part 12: Equity & Inclusiveness

As part of the business planning process, the City completed a

detailed Equity Analysis to evaluate how the Public Market project

can create economic opportunities for low income populations

and communities of color in Madison. The Equity Analysis resulted

in ten detailed recommendations.

1) Recommendation #1: Focus on making the Public Market

successful as a place for small startup businesses

2) Recommendation #2: Be culturally aware, get diverse input,

and look globally for inspiration

3) Recommendation #3: Incorporate story telling and Madison

history through Interpretive displays

4) Recommendation #4: Conduct thorough and highly-personal

vendor outreach during the pre-opening stage

5) Recommendation #5: Incorporate programming and

outreach after opening to support vendors

6) Recommendation #6: Hire outreach program coordinator

early in the process

7) Recommendation #7: Build partnerships with other

organizations

8) Recommendation #8: Connect with other assets around the

City and maintain a focus on a Market District and a city-wide

food systems strategy

9) Recommendation #9: Expand focus to other parts of the City

and consider additional future markets and satellite markets in

other areas

10) Recommendation #10: Codify these recommendations into

the project charter, incorporation papers, operating

agreements, and/or other more formal documents that will

ultimately guide the organization that implements the project

and operates the public market

These recommendations are already being incorporated into the

process of implementation. Most notable, the concept of the

MarketReady Program emerged from the Equity Analysis and the

City is working with community partners to launch that program

now. The MarketReady Program, as part of the overall vendor

recruitment effort, directly relates to recommendations #1, #4,

and #5. In addition, the City and the architecture team are

working to carefully consider the equity aspects of the physical

design of the space to ensure that it is welcoming and inclusive.

This includes incorporating civic story telling space and culturally

aware and diverse design. As such, the design process is following

through on recommendations #2, and #3. The City’s Public

Market Development Committee membership overlaps with the

City’s Food Policy Council, and its wider mission of addressing food

issues city-wide. Leaders on the two committees are working to

link the Public Market effort to the City’s broader efforts to address

food security issues and create a stronger city and regional food

system. These efforts are closely tied to recommendations #8 and

#9.

As plans for the Public Market continue to move forward, the City,

the Public Market Foundation, and other project stakeholders will

continue to review the equity recommendations and focus on

their implementation. More of the recommendations will continue

to come into play as the project moves toward construction and

opening.

Contact Information

For more information from the City of Madison about the Public

Market Business Plan, contact:

Matthew Mikolajewski

City of Madison Economic Development Division

(608) 267-8737

mmikolajewski@cityofmadison.com

For more information about the Public Market architectural design

and construction process contact:

Brent Pauba

City of Madison Department of Public Works, Engineering Division

(608) 266-4092

bpauba@cityofmadison.com

To learn more about the Public Market Foundation and the Market

Operations plans, contact:

Megan Ballard

Madison Public Market Foundation, Project Coordinator

Meganballard@gmail.com

To learn more about the Public Market Capital Campaign,

contact:

Amanda White

Madison Public Market Foundation, Fundraising Consultant

(608) 698-9104

info@madisonpublicmarket.org

To learn more about New Markets Tax Credits partnership and

investment opportunities with the Madison Public Market project,

contact:

Carrie Vanderford Sanders

Hope Community Capital LLC

(816) 807-9295

carrie@hopecommunitycapital.com

MADISONPUBLICMARKET.ORG