VANCE COUNTY REGIONAL FARMERS MARKET FEASIBILITY STUDY

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1 VANCE COUNTY REGIONAL FARMERS MARKET FEASIBILITY STUDY Vance County, NC January 6, 2011 SPONSORED PROJECT Prepared by The Earthwise Company, LLC for Vance County Office of the N.C. Cooperative Extension Service

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3 Table of Contents Executive Summary...1 Brief History of Effort / Intent...3 Programming...7 Analysis / Data Gathering...9 Summary of Similar Farmers Markets Findings Kerr Lake Visitation...13 Traffic Volumes...13 Property Overview...14 NCDOT Signage Opportunities...16 Concept...17 Financial Model...21 Potential Funding Sources...25 Findings and Recommendations...27 Option One...28 Option Two...28 Option Three...29 References...31 Appendix...33 Kerr Lake State Recreation AreaTotal Attendance Per Area NC Department of Transportation Traffic Volumes...34 Site Plan Options...35 Site Design and Improvement Breakdown...41 Site Design...41 Construction...41 Building Concepts...43 Vance County Regional Farmers Market Projected Electrical Costs...44 Survey and Survey Results...50 Similar Farmers Market Findings...57 Rocky Mount Farmers Market...57 Carrboro Farmers Market...59 New Bern Farmers Market...61 NC Department of Agriculture and Consumer Services Piedmont Triad Farmers Market...63 NC Department of Agriculture and Consumer Services Southeastern North Carolina Agricultural Center Farmers Market...65 NC Department of Agriculture and Consumer Services Raleigh Farmers Market (State Farmers Market)...67 Other Interviews...69 Other Farmers Markets in the Region...71 MLS Property Map...72 iii

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5 Executive Summary The following summarizes our assumptions, findings, and recommendations related to the feasibility of a Regional Farmers Market in Vance County, North Carolina. This follows our research into the intent and goals as set forth by the Vance County Regional Farmers Market Committee (VCRFM), our evaluation of market potential, and pertinent resources available in the area. A basic assumption was established from comments and guidance received from the VCRFM committee and other resource individuals. That assumption is that the market will need to be a break-even venture from the outset or within a reasonable timeframe. It follows that there are basically three possible options for the findings of this report: 1) the market is a breakeven (or better) venture on all costs from revenue generated, 2) the market is feasible with subsidized funding, 3) the market is not feasible. With regard to costs, we recognize two basic categories: 1) development costs (land, design, permits, management, construction, etc.) and 2) operating costs (staff, utilities, insurance, maintenance, promotion, supplies, permits, etc.). Three scenarios were proposed and evaluated based on these categories and all research and project programming. One initial assumption was made that a fully feasible, 100% return-on-investment model (all development and operating costs covered over time - similar to private ventures) is not feasible. The three scenarios are: Development costs subsidized operating costs covered by revenue and possibly limited subsidy Partnership option where the farmers market is co-located with other tenants Temporary tent-market option (as a way of assessing locations and participation) All three scenarios have some potential for success within the given parameters of each model. A financial model was prepared for the first, stand alone scenario and is discussed in the Financial Model section. Scenarios two and three do not have financial models since scenario two is highly variable due to many unknowns and scenario three can be easily adapted to fit the projected revenue stream and funding. Scenario one seems to be the most feasible approach if we assume that the market is a standalone entity and grant or other subsidy funding can be obtained for at least the development of the structure. If that funding can be secured, it appears likely that, with limited funding from another source such as the county, for some period of time, the operating costs could be covered given projected participation and revenue. 1

6 If the market can be co-located with other, mutually supportive tenants (scenario two) there is opportunity for reduced development and operating costs. Additionally, there is also opportunity for greater visibility and visitation resulting in higher revenues. If the structures and site can be designed such that the farmers market remains a prominent feature, it can retain its character as a farmers market and benefit from the stronger collective identity of the site. If funding cannot be obtained for site building development, we recommend that the committee pursue, with moderate funding sources, scenario three in which a single site (parking area, etc.) could be leased at low cost and uniform tents purchased to create an identity under which to combine all current markets in Henderson. This would allow an assessment of one or more sites as well as participation and support by vendors and consumers in preparation for a later round of grant funding. Again, scenario one is feasible as a stand-alone facility if full funding can be obtained for the development costs and operating costs are covered by market revenue and other subsidy. Scenario two is possibly feasible (depending on how other tenants influence development and operating costs). And scenario three is feasible and suggested if neither option two or three are successful. The stand alone market as desired by the committee is feasible with fully subsidized funding for the development costs and with indefinite subsidized funding for a portion of the operating costs. Grant funding opportunities exist for subsidizing both the development and operating costs. The goal is to obtain full funding of the development costs through grant opportunities such as The Tobacco Trust Fund. Operating costs (as indicated in the 3-year budget) can likely be reduced through proper management and a portion of the remaining shortfall may be covered by additional grant funding thereby reducing any subsidy requested from the County. The goal is to achieve a break-even condition in the operating budget within 3 to 5 years, depending on a growing market identity, increasing revenue stream, and growth in committed vendors and consumers over that time. 2

7 Brief History of Effort / Intent Initial interest in a regional farmers market in Vance County began to surface in early 2009 with the Vance County Farm Bureau and a group of farmers asking the Vance County Board of Commissioners to endorse its efforts for a new farmers market. This effort recognizes the current movement in the market toward local food and the need to support local farmers and artisans. The local food/farming movement is an outgrowth of the overall concern about our changing economy, loss of small farms, energy issues, food safety, resulting in a movement toward sustainability. In North Carolina, that movement can be summed up in the following statement from the North Carolina Cooperative Extension website: North Carolina is home to more than 200 farmers markets and tailgate markets, and the number grows every season. Growth in these direct markets has been phenomenal in North Carolina, following a national trend. There are advantages for both consumers and growers. Buying directly from farmers allows consumers to put a face with the products they are buying and ask questions of their grower. Buying direct pays full retail price to the farmer and provides consumers with the freshest produce at the peak of harvest. The US Department of Agriculture estimates that North Carolinians spend $350 billion on food. If North Carolinians spent just 10 percent of their food dollars on local foods every year, it would be worth $3.5 billion in the local economy, part of which would flow back to farmers and food businesses. In July 2009 a group of local representatives visited both the Nash and Columbus County farmers markets to assess the layout and use of those facilities. In October 2009, a committee was formed to coordinate the effort to develop a regional farmers market in Vance County. In July 2010 the Committee sent a Request for Qualifications to consultants of interest in conducting a feasibility study for the market. The Request for Qualifications stated that the feasibility study was to, determine the viability of need/success of a local farmers market, assist in determining the best location and cost for purchasing land, the design and construction of a multi-use building. In July 2010, The Earthwise Company submitted its qualifications and that of its team to Paul McKenzie. The County Commissioners agreed that The Earthwise 3

8 Company of Wake Forest, North Carolina be selected to conduct the study. In September 2010 The Earthwise Company was contracted to begin the feasibility study. The term feasibility refers to the question: Can it be done and will it be successful; is it feasible? Success, and therefore feasibility, must be defined based on some assumptions. These assumptions are based on costs and revenue. We believe there are generally three forms under which this project can be considered to be feasible: 1) all costs to design and develop the project are covered by a subsidy such as a grant and operating costs are covered by market revenue (no cost to county), 2) partial cost for development and operations are covered by subsidy and the county and part from market revenue (county must bear some of both development and operations), and 3) all development and operating costs are covered by revenue (no subsidy - operations pay off land, development, and operations costs). The process of determining feasibility is the same as in the early stages of the development of a full-scale project (inception through construction). We proposed to follow those initial fundamental steps of the design process which included: Programming This is the initial step in the process and involves identification of functional goals for the project. We met with all appropriate staff, committee members, and the public to gather data on goals and objectives for the project and incorporate that into a single written Program Statement to guide the remainder of the effort. Analysis Typically, in site development, analysis involves the collection of data related to the site. In this case we are also developing existing and projected market data to support the potential facility. This involved analysis of political, legal, economic, environmental, governmental, and social issues related to the project. This will assess the triple bottom line (physical, social, environmental) aspects of the project as it relates to feasibility. For example, physical site data are things such as: parcel size and configuration, topography, hydrology, and environmental components. The relation of the site to adjacent land uses and regional factors is also important. Another important part of the process will be to assess the market potential of the project. This will involve the community assessment (demand), vendor assessment (supply), additional income sources, and associated cost components. Concept Development Based on the Program and data collected about the site and its environs, schematic concepts for the project are proposed and evaluated. The Schematic Plan addresses general site configuration, size, site components (structural, pedestrian and auto circulation, utilities, etc.) and location. This will help establish parameters for site selection. These first three components establish the basis of the feasibility study. The following are generally next steps in the actual design, financing, construction, and evaluation of the project and while they are not part of the scope of this phase of the project, they are included here for information. 4

9 Design Development Once a concept has been approved, the details of that concept are then developed into Construction Documents. These documents guide the detailed implementation (financing, permitting and construction) of the project. Implementation After all financing and approvals are in place, construction of the project may begin. This involves bidding, contracting, construction supervision, permit compliance, and as-built certification. Evaluation Once a project is complete, there is some form of evaluation of the process, both short and long term. Short-term evaluation involves schedules and budgets and other short-term goals. The longer term evaluation includes the financial and physical sustainability of the project effort. The following is an outline of scope of the work and deliverables as indicated in the proposal: 1. Background Data and Community Assessment a. Review objectives and service area with County staff b. Identify potential vendors and customers in service area c. Interview a portion of that group via focused meetings (2 minimum) d. Conduct at least one public information meeting to share/gather information e. Identify potential additional uses for the facility f. Identify desirable and feasible locations for the facility g. Identify likely costs and income in early stages of operation h. Identify potential grant funding sources i. Prepare a schematic (not site-specific) plan for the facility (size and configuration) 2. Future Potential of the Market a. Develop Operating Budget (3-year) b. Assess potential for expansion c. Identify building requirements based on multi-use goals d. Identify potential future uses 3. Review and Delivery of Report a. b. c. d. Deliver three print copies and one electronic copy (pdf) to county staff for review Present reviewed and approved report to county commissioners (at December meeting) Incorporate Board of Commissioners comments as appropriate Finalize and deliver document to county staff 5

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11 Programming (based on initial meetings to identify goals) Any design and development process begins with programming, analysis of resources and market, and concept development in order to analyze feasibility. The programming phase of this effort began with work by the committee prior to seeking a feasibility study. Once The Earthwise Company was selected to conduct the study, we met with the committee to gain further insight as to the functional goals for a regional farmers market. That initial meeting took place on August 16th, The results of that meeting were combined with input from various additional resource individuals and from two public meetings to provide the basis for the following Program Statement. Program Statement To provide regional farmers, residents, and visitors a well located, designed, and managed facility that will support the sale and purchase of regional agricultural products. Additionally, the facility will provide an appropriate yearround indoor meeting venue for at least 100 attendees, especially for agriculture-related events, and also provide combined indoor/outdoor seasonal meeting opportunities (family reunions, church meetings, etc.) for larger numbers. Finally, the facility should enhance the local agricultural economy and awareness of local foods and healthy eating habits. The facility should be a good neighbor for Henderson and the region. 7

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13 Analysis / Data Gathering Along with collecting input for use in the preparation of functional goals, we collected data that would be relevant to both the cost and revenue sides of the feasibility equation. A survey was prepared for dispersal at the County Fair, to attendees of the two public meetings, posted online, and given to anyone who could be reached by team and committee members. A copy of that survey is included in the Appendix along with the results data. Two public input meetings were organized and conducted: 1) for potential vendors on October 11th, 2010 and 2) for public input from consumers on October 14th, Three mailing lists (from Vance, Granville, and Warren counties) were used to mail approximately 700 post cards notifying people about the meetings in addition to press releases and s to Extension mailing lists. Schematic notes from each meeting are included in Supporting Data. Team members visited the Nash County (Rocky Mount) farmers market and toured with market manager on October 20th, 2010 to gain input on utilization and design of that market which is similar to the concept that the committee envisions. Additional site visits to farmers markets included: State Farmers Market in Raleigh, Carrboro Farmers Market, and the Piedmont Triad Farmers Market in Greensboro. Additional research was conducted via conversations/ s with market managers of six precedent markets: Rocky Mount Farmers Market, Piedmont Triad Farmers Market, State Farmers Market, Southeastern Farmers Market, New Bern Farmers Market, and Carrboro Farmers Market. Full documentation of those findings is included in the Appendix. Conversations and correspondence was conducted with county extension officials, others knowledgeable in farmers market startups, and others in neighboring counties recommended by the Vance County Regional Farmers Market (VCRFM) committee including Jackie Sargent (re: Oxford Farmers Market), Carl Cantaluppi (Granville County Extension), Martha Mobley/Tracy Perry (Franklin County Extension), Taylor Clark (Mecklenburg County, VA Extension - no response), Kevin Hardison (NCDA&CS), and Debbie Hamrick (NC Farm Bureau Federation, Specialty Crops). 9

14 Extensive research was conducted via the web to gain insight into the experience of starting and operating markets from other parts of the country, to include market research, site selection, operations, costs, revenues, promotion and advertising, budgeting and bookkeeping, funding, etc. One valuable tool in that effort was the USDA National Farmers Market Manager Survey 2006 which was prepared by the United States Department of Agriculture (USDA), Agricultural Marketing Service and published in May The team visited both of the existing farmers markets currently operating in Henderson and also visited several of the potential farmers market sites which the committee offered as examples of typical available sites. Additional meetings and conversations included a meeting with Nancy Wilson (Department of Tourism) to discuss aspects of the market and correlated efforts to locate a new visitor center and offices for Tourism. The head chef at Vance-Granville Community College was interviewed for input on the process and proposed facility. Individual discussions were conducted with some VCRFM committee members during this data gathering process as well. Mike Ortosky attended the meeting in Louisburg, NC on October 26th, 2010 that was conducted by the Extension office in Louisburg (Martha Mobley) to discuss potential Livestock Slaughter Facility, Regional Farmers Market, and Commercial Kitchen facilities in Franklin County. The meeting was well-attended with about people (standing room only) who seemed to be generally cattlemen, and some growers; a couple of Franklin County Commissioners were also in attendance as well as the local press, etc. There was extensive discussion surrounding the slaughter facility (seemed to attract the most interest). The farmers market component of the project also focused on processing, storage, and a community kitchen as a potential part of the facility. According to the consultant, the farmers market facility is recommended to be along the US 1 Highway near the Franklin County/ Wake County line (Youngsville Area) which would put it in a non-competitive location to the Vance County Regional Farmers Market. Cooperative Extension staff in attendance that night had also recently been to the Wal-Mart in Louisburg to meet with the manager that day to inquire about the new 30% local food initiative. He apparently confirmed that direction had come from the home office, and they wanted product and were ready to receive. According to the Extension staff members, the manager apparently said that they cannot get enough local and that he was also interested in organic produce. Due to interest voiced during public meetings and other interviews about the possibilities for including a catering kitchen, commercial kitchen, or teaching kitchen within a regional farmers market, contact was made with state and local officials regarding requirements for these types of facilities including Dr. Beth Yongue (NCDA&CS Meat and Poultry), Melanie Moore (NCDA&CS Food and Drug Protection), and Jim Kelly (Vance County Environmental Health). According to Jim Kelly, the Vance County Environmental Health Inspector, a kitchen that is intended for use by a caterer coming into the facility with already prepared foods to be served on site would not require an inspection. Additionally, no inspection is required for a teaching kitchen where items are not being sold to the public. However, in both cases, if meals are being prepared in the kitchen to be served to the public, a county health department inspection is required. When county health department 10

15 inspection is required for a kitchen, it must meet the rules denoted in Title 15A Subchapter 18A Section.2600 The Sanitation of Food Service Establishments - of the North Carolina Administrative Code (provided in Supporting Data). According to Melanie Moore, Food Compliance Officer with the NC Department of Agriculture & Consumer Services Food and Drug Protection Division, the Current Good Manufacturing Practices section of the North Carolina Administrative Code (provided in Supporting Data) applies to all kitchens engaged in food processing and packaging operations subject to inspection by her Division. Any products to be sold as consumer selfservice type items must be meet specific packaging and labeling requirements. No license is required for these facilities. If meat and poultry processing is involved, inspection by the NC Department of Agriculture & Consumer Services Meat and Poultry Inspection Division is required. The relevant Guidelines for Meat Processing Plants are also provided in Supporting Data. A meeting was conducted with a commercial real estate professional, known to and selected by The Earthwise Company, who was familiar with the Henderson market. The intent of the session was to gain data (current as of November 2010) on available sites and asking prices on commercial sites in the Henderson area. He provided that data based on screening criteria provided by The Earthwise Company. The intent was to determine general pricing, based on size and location, for a variety of sites which were located in potentially suitable locations. The general search was for sites that were 10 acres or less or could be subdivided to an appropriate size of 2 to 5 acres for a stand alone facility. Summary of Similar Farmers Markets Findings Six existing farmers markets were studied and several agricultural professionals with knowledge or experience in development of new farmers markets were interviewed. Three of the farmers markets studied are non-profit organizations, run by a board of directors and supported by a market manager or coordinating team. The other three markets are Stateowned and operated. Summaries of the data collected on each of the farmers markets are included in the Appendix. Based on the research of these six markets, some major points (both operational and structural) attributed to the success of these markets included: In most cases, the vendors themselves produce all goods sold at the market. All markets appear to have a strong management structure focused on promotion and successful operation of the market. 11

16 All markets had some level of connection with a local or state government entity either for land, building, management oversight and / or financing. Creating a destination through partnership with other businesses (e.g. garden center, restaurant) was attributed to some of the early successes of state markets. One Way In circulation pattern with a regional market provides a level of security. Visibility from the adjacent Interstate or road seems to aid in promoting markets. Some deterrents to market success may include: Facilities or portions of facilities unused for much of the week. Inadequate or underestimated planning for retail versus wholesale in a given market area. Inadequate planning for the future of a structure (e.g. plan for successful retrofit enclosure in the future if open air initially). Lack of visibility from a main road. Distance from town (6 miles may be too far). Many of these findings were reinforced by the interviews with the agricultural professionals. Two of the three individuals interviewed felt that the professionalism of the farmers / vendors was an important key to the success of farmers markets. Electronic Benefit Transfer (EBT) was raised as an important consideration for a regional market in Vance County due to its Tier 1 status. The machines used to accept EBT can also support credit card transactions which could help attract tourist/vacationer markets traveling on Interstate 85 to and from Virginia or to and from Kerr Lake. Two of the three individuals The most critical issue related to a farmers market s success is having a large enough pool of committed vendors. interviewed strongly insisted that in order for a farmers market to be successful, the most critical issue related to its success is having a large enough pool of committed vendors that will be loyal to the market in its early days while it works to attract a strong customer base. Data on market sales was not readily available from local markets however some data was gathered from the 2006 USDA National Farmers Market Manager Survey (published by the USDA Agricultural Marketing Service in 2009) as well as limited anecdotal data from local sources. According to the national survey, an average monthly sale per vendor in the Southeast region for all markets was $927, with a median figure of $300. Seasonal markets produced lower sales with an average of $520 per month and a median of $280. Average number of customers per week in the Southeast region for all markets was 680 and for seasonal markets was 367. Anecdotal local data on sales ranged from less than $200 per day to $500 or more per day depending on the season with higher figures occurring in peak growing seasons. Accurate data on local sales is difficult to find and substantiate. 12

17 Kerr Lake Visitation A portion of the highway traffic that is analyzed in the Traffic Volume section is seasonal visitation to Kerr Lake. Kerr Lake is a reservoir along the border of North Carolina and Virginia created by the John H. Kerr Dam which impounds the Roanoke River. It is one of the largest reservoirs in the Southeastern United States with over 850 miles of shoreline and 50,000 acres of impounded area. The large lake is popular for fishing and recreational purposes to include camping and boating. According to data provided by the Park Superintendent at Kerr Lake State Recreation Area, total visitation in 2009 to the North Carolina (Vance County) recreation areas was 1,156,617 visitors. See visitation data from for the eight major recreation areas in Vance County included in the Appendix. The highest individual area 2009 visitation among the eight areas is at Satterwhite Point on the east side of the lake (I-85 access) at 268,220. The next three highest visitation volumes are at Nutbush (223,104), Steele Creek (187,428), and Hibernia (138,532) on the west side of the lake (NC 39 access). Discussions with local resource people, to include Department of Tourism, indicate that there is some difficulty getting lake visitation traffic into the Henderson area as visitors are focused on getting to the lake and staying at the lake once there. Several events associated with the Kerr Lake area, however, do bring visitors to Henderson such as: fishing tournaments, July 4th weekend, classic car and drag race event in October, regattas, and many other local events. Much of the traffic and visitation to Kerr Lake coincides with the growing and marketing seasons for a farmers market (April-November). The challenge is, however, to create a strong enough identity for the market to capture a portion of those visitors as market patrons. Traffic Volumes The following is an assessment of the traffic volumes in the Henderson area as an indicator of potential visitation to the Regional Farmers Market. The Earthwise Company accessed the North Carolina Department of Transportation Traffic Survey data for 2009 in the form of Annual Average Daily Traffic (AADT) for various segments of state roads, NC highways, US highways, and Interstate highways in the area. The 2009 AADT map is included in the Appendix for reference. Logically, the highest traffic volumes are on Interstate 85, US 1, US 1 Business, NC 39, and the cross-town traffic associated with those highways on Ruin Creek Road, Dabney Drive, Andrews Avenue (NC 39) and the Warrenton Road. These high volumes indicate the level of traffic to, from, and around Henderson as well as through-traffic along the major corridors. The high volumes along major thoroughfares within Henderson (Ruin Creek, Dabney, Andrews, etc.) indicate that there is significant flow at the major intersections with I-85 and US 1. Interstate 85 has a range of 32,000 cars daily on the south end of Henderson and 26,000 on the north end with highest volumes of 37,000 on the segment from Dabney to NC

18 US 1 Bypass volumes range from 8800 on the south end to 5800 on the north end with highest volumes of 11,000 on the segment near NC 39. US 1 Business volumes range from 13,000 on the south end to 3200 on the north with highest volumes of 15,000 just south of the Warrenton Road intersection. Cross-town volumes along NC 39 (Andrews Avenue) between US 1 and I-85 range from 13,000 to 17,000 per day. Volumes along Dabney between the US 1 Business area and I-85 range from 14,000 on the US 1 side to 25,000 near the I-85 intersection. Ruin Creek Road volumes are highest at 13,000 in the area of the intersection with I-85. In summary, it seems that greater volumes occur along the US 1 and I-85 corridors from the south than the north of Henderson indicating a high volume of daily traffic to and from Henderson from the south. There is a greater reduction in flow percentage-wise on the US 1 side than on the I-85 side indicating more travelers entering Henderson daily on the US 1 side than the I-85 side and more traffic continuing through the area on the I-85 corridor. The highest total volumes are on the I-85 side and the highest intersection volumes are in the vicinity of the Dabney/I-85 intersection and the NC 39/I-85 and Ruin Creek/I-85 intersections with Dabney being the highest (about 25,000) and the NC 39 and Ruin Creek areas being similar at about 13,000 each. Highest intersection volumes along US 1 occur at the US 1/NC 39 intersection at about 15,000. This data indicates that the seven most potentially productive locations for the market, based on auto traffic only, in order, are: 1. Dabney Drive and I-85 intersection area 2. NC 39 and I-85 intersection area 3. Ruin Creek Road and I-85 intersection area 4. US 1 Business and I-85 area just south of Warrenton Road intersection 5. NC 39 and US 1 intersection area 6. Along NC 39 (Andrews Avenue) between US 1 and I Along Dabney Drive between US 1 Business area and I-85 The intersections along I-85 have the advantage of both high local traffic volumes (along Ruin Creek, Dabney, and Andrews) and high volumes of traffic on I-85. The single intersection along US 1 that is closest to town and has high intersection volumes is the US 1 and NC 39 intersection. Property Overview As part of the feasibility review, The Earthwise Company visited the area to gain an understanding of locations, visibility, and availability of properties in the Henderson area that might have potential as sites for the farmers market. While these are not necessarily offered as proposed sites, they represent a spectrum of the types of property that might be acquired for the market. This allows some estimates of per-acre prices of potential sites. This information, combined with the estimated site acreages from the concept plans, allows an estimated line item for land costs in the development budget. 14

19 Based on this knowledge of preferred locations, The Earthwise Company, with the help of a local commercial real estate agent, conducted online site searches of properties that were on the market during November We looked at sites in the 2 to 5 acre range and also larger sites that might have the possibility of having smaller tracts subdivided out of them. We reviewed sites that were listed on one or more MLS-type sites as available within a 5 mile radius of the center of Henderson. These search results are not intended as completely inclusive nor do they represent a highly detailed statistical study of property values. There are, no doubt other properties available that are not currently on MLS listings, those listings change frequently, and other properties may be pursued that are not currently for sale. Also, the listing price data are simply asking prices and may not represent the actual value or a price that might ultimately be negotiated. Finally, some of the parcels are larger than what is needed for the 2 to 5 acre farmers market site but may possibly be subdivided to an appropriate tract size. Another consideration in evaluating parcels is the option to partner with other entities which may have, or be looking for, properties for their own ventures. As mentioned in the findings, one option is to pursue a site with other, mutually-supportive tenants in order to gain visibility and visitation as well as potentially lower required investment in land and operating costs for the facility. The summary spreadsheet of the parcel data is included below for reference, and a map for each parcel is included in the Appendix for further information. The individual fact sheets for properties are included in Supporting Data. As the data shows, prices can be quite high in high-visibility/traffic locations, as much as $200,000-$300,000 per acre for smaller parcels. Conversely, tracts located in moderate visibility/ Land Parcel Comparison - Henderson Area - November, 2010 Acreage Price Price Per Acre Location $2,705,000 $6800-$186, Ruin Creek Road 2 6 $900,000 $150,000 Graham Avenue Business Park ,000 53,300 US 158 north of Warrenton Road $2,183,000 $152, S. Beckford Dirve 5 14 $949,900 $67, Raleigh Road $500,000 $175,000-$290,000 NC 39 and S. Beckford Drive $300,000 $46,800 Adjacent to Toyota just south of Dabney Drive Business Center $375,000 $118, Raleigh Road 9 22 $660,000 $30,000 Graham Avenue - across from Henderson Country Club $1,440,000 $15,000 +? Facet Road off US $1,400,000 $140,000 Intersection of US 158 and US 1 Business at I-85 junction $383,500 $26,000 Martin Creek Road near US 1 at Bearpond Road $268,500 $30,000 North Wind Lane at I $654,900 $8700+? Martin Creek Road adjacent to Wal-Mart distribution center 15 2 $200,000 $100,000 US 158 Business and Ruin Creek Road $799,000 $177,800 Graham Avenue near Ruin Creek Road and I-85 junction The average price per acre for theses 16 parcels is about $100,000 with a range of about $26,000 to about $290,000 depending on the size and location of the parcel in question. Certainly some of the larger parcels have a much lower per-acre price if the entire parcel is purchased but if a 3-5 acre parcel is subdivided out of the larger tract then the price is significantly higher. These parcels were selected out of about 100 total parcels based on their availablity, commercial use potential, size, potential to be subdivided, and location. 15

20 traffic areas may be priced in the $25,000-$50,000 per acre range. Average price seems to be about $100,000 per acre in some suitable areas. In order to keep the cost for land as low as possible, the market design may need to embrace one of the smaller configurations (2 to 3 acre) which might place it in a higher visibility area but limit use and expansion, or the market may need to become a partner in a larger tract with compatible tenants to accomplish cost and utility goals. Alternately, the market may be located on a somewhat less visible, moderately priced, larger tract that would accommodate future expansion and a greater variety of uses. With this type of project (pre-engineered building with simple footprint, relatively simple site layout, and minimum site amenities) the expenditure for the land should not exceed about 35-40% of the total budget. This assumes a budget for the site improvements, building construction, permits/fees, and design to be in the 55-60% of total costs range. Given an estimated budget for total development costs (land, design and engineering, permits and fees, building and site improvement costs, etc.) of about $850,000 then maximum land costs should remain in the $300,000-$340,000 range and certainly less if possible. We want to emphasize that these numbers are estimates and are for preliminary budgeting purposes only. More specific site and building plans will need to be developed and applied to an actual site in order to be more accurate. NCDOT Signage Opportunities One aspect of promoting the market to drivers is the potential for signage on major routes under the management of the North Carolina Department of Transportation (NCDOT). There are a few possible options for obtaining signage on one or more of the major routes in the area. Three of those potential options were researched in a preliminary fashion: signs for Major Traffic Generators, Tourist Oriented Directional Signs, and LOGO Signage. Major Traffic Generator signs are generic (Arena, Stadium, Zoo, etc.), provided at NCDOT expense, and require a minimum of 250,000 trips annually to the attraction (approximately 685 per day). It is not likely that this would be an option for a stand-alone market in the foreseeable future. Tourist Oriented Directional Signs (TODS) are for tourist-related facilities and, along with other requirements, must be in continuous operation at least eight hours per day, five days per week and 30% of the products and 40% of the business (revenue) must be tourist related. This may be a possibility if the market co-located with tourist-related tenants who were in operation five days per week. LOGO Signage provides eligible businesses with the opportunity to be listed on official signs within the right-of-way of fully controlled access highways. A farmers market appears to qualify under the Attractions section (19A NCAC 02E.0219 (9)). The fee is $300 per panel per year (renewable annually). For more information please visit the NCDOT link below. 16

21 Concept Once the functional goals (program) and a market and resource analysis were complete we began to frame options and conditions under which the regional market might be feasible. Lacking a specific site, we used a schematic approach to developing options for site plans. The intent here was to create a variety of options that will not only help to set size parameters but also possible configuration for potential sites. Five schematic concepts for the site layout were developed which provide potential layouts and give some guidance as to the size and configuration of tract needed. The indicated minimum size ranges from 1.9 acres for a single building and associated parking and buffers to 5.6 acres for two buildings and associated parking and open space providing future tent expansion and/or additional site functionality for other uses. All of the schematic concept plans which were developed are presented in the Appendix for reference. These are not intended as detailed designs (not for construction or bidding) but as a guide in potential site evaluation. These concepts assume relatively level sites without major constraints such as steep terrain, wetlands/streams, shallow bedrock, and other considerations in site development. The plans indicate a net buildable area requirement. Once a potential site is located, the concept templates may be used to evaluate its suitability for development. Certainly, at that point, a specific site plan will need to be developed which accommodates the farmers market within the specific characteristics of the site. Based on guidance from the VCRFM committee and other resource individuals, a general concept for the building was developed by Maurer Architecture for The Earthwise Company. Several committee members had visited other existing markets and were impressed with the Nash County Farmers Market in Rocky Mount, North Carolina. Input from potential vendors and the public indicated that at least fourteen and possibly up to twenty-eight vendors would be interested in selling at the market at various times. With that input the initial building is Restrooms/ Office 2.4 acres 1"=40'-0" COALY DESIGN LANDSCAPE ARCHITECTURE 537 E. Martin Street Raleigh, NC Open Space / Demo Plots, etc 17

22 proposed to have eighteen stalls and associated bathrooms, office, storage and break room/ catering kitchen. This concept is presented in drawings by Maurer Architecture in the Appendix. As with the site plan, this building concept plan is not intended as a detailed or final for construction and bidding document but rather a guide in developing budgetary estimates and further design input. The combined building and site concepts are offered as a response to data and input collected throughout our feasibility process. These are a response to a stand alone option in which the farmers market is the only entity on a particular tract. The market would need to be located in one of the higher traffic areas of Henderson (see NCDOT data) with as much visibility as possible. The concept is further offered to accommodate alternate uses of the structure such as meetings, events such as weddings, family and church reunions, meals, community gatherings and so forth. An additional set of drawings are included which show an option for an additional structure that includes office spaces as a way of creating additional site identity, visitation and revenue. If there are other entities which would benefit from new office space and that would be complimentary to a farmers market, they might share in development and 18

23 operating costs and also bring additional visitors to the site. The concept shown indicates that this could be done while maintaining the architectural character of the farmers market and thereby assuring that the market remains the primary identity for the location. Again, the concept is one of a multi-use facility with several sources of revenue that has the character of a modern agricultural market in a prominent location that promotes identity and visitation. 19

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25 Financial Model A financial model was developed within which to assess opportunities for land acquisition, site and building development, and revenue potential. This model is comprised of two components: 1) estimated development costs, and 2) a 3-year operating budget. Both of these components are based on a stand alone model where the farmers market is the only structure on a site which is exclusively dedicated to the market. Both of these components of the financial model are included. The estimated development costs include: the purchase price of a site and the associated closing costs (revenue stamps, agent fees, etc.), building design and construction costs, site design and engineering and improvement costs, and various permits and fees (grading, erosion control, stormwater, utility tap fees, etc.). Project management is also listed in that component but is likely to be handled by county personnel and so no cost is shown at this time. The largest portion of the development costs is that associated with the building. The figures shown are based on an actual budgetary estimate obtained by Maurer Architecture from Barton Group Construction and Development of Raleigh, North Carolina and are for the concept as developed by Maurer Architecture. These are just estimates that can and will be adjusted during the actual process of construction design and bidding. Additional costs Development Costs ITEM COST Land Purchase Price/ $212,000 Closing Costs (6.2%) Building Construction $485,000 Design $25,000 Site Improvement $100,000 Design $25,000 Permits/Fees $3,000 Project Management TOTAL DEVELOPMENT COSTS 2 $850,000 1 Assumed to be covered by county staff. 2 Assumed total $850,000 based on proposed total grant funding. 21

26 associated with the building are architectural design fees. It is our understanding that a portion of the initial grant for this portion of the effort will be applied to those architectural drawings and if so, a portion, or all, of the architectural design fees shown in the estimate might be funded outside of the model shown. Another significant portion of the development cost model is the acquisition of land. The portion shown as an estimate of potentially available funds for land acquisition is a remainder after deducting other costs for building and site development and permit fees from the assumed total available grant and subsidy funding ($850,000). This does not represent an absolute figure available for the land purchase but an early estimate and a guide for assessment of available parcels. All of the components in the model are flexible. The second component of the financial model is the estimated operating budget for the first three years of the market. This model is based on a profit and loss structure in which total revenues for each year are estimated and the estimated costs of operation are deducted to Financial Model Three-Year Operating Budget Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 REVENUES Annual Monthly Annual Monthly Annual Monthly Daily vendor stall fees ($10/weekend; $5/weekday) $7,560 $630 $8,316 $693 $9,148 $762 Facility rental fees ($300/full day) $900 $75 $1,350 $113 $1,800 $150 Facility rental fees ($150/half day) $450 $38 $1,125 $94 $1,800 $150 TOTAL REVENUES $8,910 $743 $10,791 $899 $12,748 $1,062 Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 EXPENSES Annual Monthly Annual Monthly Annual Monthly Salary + taxes (Market Manager) 1 $18,000 $1,500 $19,800 $1,650 $21,780 $1,815 Power $7,250 $600 $7,500 $625 $7,800 $650 Water/Sewer $600 $50 $660 $55 $726 $61 Communications (phone/internet) $1,800 $150 $1,980 $165 $2,178 $182 Insurance (monthly fee) $1,200 $100 $1,320 $110 $1,452 $121 Permits (annual) $100 $8 $110 $9 $121 $10 Site Maintenance 2 $3,150 $263 $3,465 $289 $3,812 $318 Building Maintenance $600 $50 $660 $55 $726 $61 Marketing / Promotions $3,600 $300 $3,200 $267 $3,000 $250 Supplies $600 $50 $660 $55 $726 $61 TOTAL EXPENSES $36,900 $3,071 $39,355 $3,280 $42,321 $3,527 Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Annual Monthly Annual Monthly Annual Monthly NET -$27,990 -$2,328 -$28,564 -$2,380 -$29,573 -$2,464 Assumptions Revenues Assume all 18 stalls will be occupied from April through October. Assume one weekend day and one week day operations per week. Assume year 1 includes 3 full day meetings, 3 half day meetings. Expenses Assume approximate 10% increase in costs per year (except marketing/promotions). Does not account for long-term building maintenance cost (paint, repairs, upgrades, etc.). 1 Assume part-time/no benefits. 2 Assume mowing, mulching, and other. 22

27 result in a net annual figure. Total revenues for each of the first three years are based on proposed vendor fees and event fees and assumed occupancy and use. Assumed operating expenses which are deducted from that revenue include: salary for part-time market manager, power, water-sewer, communications, insurance, permits, site maintenance, building maintenance, marketing/promotion, and supplies. Estimated revenues for the first three years are in the approximately $9,000 - $11,000 range and estimated operating costs are in the approximately $37,000 - $40,000 range. This of course indicates annual shortfalls in the range of $28,000-$30,

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29 Potential Funding Sources There appear to be quite a number of grant opportunities available to help support new and existing farmers markets both through development and implementation. Potential funders include the US Department of Agriculture (USDA), Tobacco Trust Fund Commission, Golden Leaf Foundation, Rural Advancement Foundation International (RAFI), Farmers Market Coalition, among others. These potential sources are focused around support of farmers market development and / or promotion and investment in community and / or low-income populations. The USDA has several funding opportunities including The Farmers Market Promotion Program and other opportunities defined as support for marketing value-added agricultural products. A list of potential funding sources and links to their URLs are listed below. Grant funding opportunities exist for subsidizing both the development and operating costs. The goal is to obtain full funding of the development costs through grant opportunities such as The Tobacco Trust Fund. Operating costs (as indicated in the 3-year budget) can likely be reduced through proper management and a portion of the remaining shortfall may be covered by additional grant funding thereby reducing any subsidy requested from the County. The goal is to achieve a break-even condition in the operating budget within 3 to 5 years, depending on a growing market identity, increasing revenue stream, and growth in committed vendors and consumers over that time. North Carolina Tobacco Trust Fund Commission Golden Leaf Foundation USDA Farmers Market Promotion Program Targeted to help improve and expand domestic farmers markets, roadside stands, community-supported agriculture programs, agri-tourism activities, and other direct producer-to-consumer market opportunities. USDA Value-Added Producer Grants Grants for planning activities and for working capital for marketing value-added agricultural products. 25

30 USDA Community Food Projects Competitive Grants Program Grants for projects to meet the food needs of low-income people; increase the self-reliance of communities in providing for their own food needs; and promote comprehensive responses to local food, farm, and nutrition issues. USDA Rural Business Opportunity Grant Promotes sustainable economic development in rural communities with exceptional needs. USDA Rural Energy for America Program Provides funds to agricultural producers and rural small businesses to purchase and install renewable energy systems and make energy efficiency improvements. May be an opportunity to improve energy efficiency of market structure. USDA has other grants that go directly to State Departments of Agriculture. These may then be available to other entities within the state. Rural Advancement Foundation International (RAFI) Tobacco Communities Reinvestment Fund $30,000 grants available to communities. Funded some markets in Farmers Market Coalition Educational Mini-Grants to Farmers Market Associations $500 to support educational events for farmers market managers and producers. Other potential resources that have supported farmers markets in the past: Z. Smith Reynolds; Conservation Fund s Resourceful Communities Program NC Rural Economic Development Center W.K. Kellogg 26

31 Findings and Recommendations Based on input from the VCRFM committee, public input at meetings, and various resource individuals and groups, we find that there is significant interest in a regional farmers market and that it should be located near one of the seven higher traffic intersections or thoroughfares as shown in the Traffic Volumes section. Land costs are a major determinant in selection of a parcel in those locations as is the cost of a building that will support the intended functions of this market. Land costs are significant as indicated in the Property Overview section and the Land Parcel Comparison table. Clearly cost for land acquisition will comprise a major portion of the total development cost for a stand alone farmers market. Options seem to exist for not only negotiating land prices but also to acquire property that is subdivided from a larger parcel and in locations that are not as expensive as the highest value property but remain in a higher volume traffic area. Additionally, there is the option to co-locate with other tenants and thereby possibly reduce required land, infrastructure, development, and operating costs. Building costs are the major component of the total development costs and those can be competitively evaluated in order to gain the best value. Estimates of building costs for a preengineered structure seem to be in the $47 - $67 per square foot range at this time. Another aspect of the success of the market is participation, both by committed vendors and by consumers committed to eating local, healthy foods and buying local products while supporting local farmers, artisans, and the local economy. Response to our public meetings and surveys indicates general interest and support for a farmers market (see results of meetings and survey in Appendix). Ninety-three percent (93%) of the 101 responses to the survey indicated that they would visit the market at least once a week. Strong desire was indicated primarily for fruits and vegetables but also for value-added products; meats, dairy and eggs; and arts and crafts. There was also strong interest in the facility as a meeting venue. Eighty-one percent (81% - 89 people) of the respondents indicated that they Please attend one of the two meetings to get information and give input on the planned Vance County Regional Farmer s Market Both meetings at H. Leslie Perry Memorial Library 205 Breckenridge Street in Henderson, NC Monday, October 11 th, 2010 from 7-8:30 PM Vendors Meeting Thursday October 14 th, 2010 from 7-8:30 PM General Public If you cannot attend either meeting please direct any questions or comments to: Paul McKenzie Agricultural Extension Agent (252) paul_mckenzie@ncsu.edu See opposite side for a survey We value your input!!! For accommodations for persons with disabilities, contact Paul McKenzie at no later than 5 business days before the event 27

32 would attend events at the facility and fifty-four percent (54% - 56 people) indicated that they would be interested in renting the facility for their own events. In areas where meeting venues are limited, use of the facility can be an important part of the success of a market, both financially and in creating a strong identity. The area in and around Henderson seems limited with respect to larger meeting facilities such as the proposed Farmers Market might provide, that is, a facility which could hold one hundred or more attendees. Response from the public meetings and interviews indicated it is likely that a facility such as this would be used regularly for North Carolina Cooperative Extension meetings and events, other agriculture-related events, and a variety of non-agriculture events such as family reunions, classes, public meetings, fairs, and shows. Most of the survey respondents (88%) were from Vance County and sixty-five percent (65%) indicated that they would travel up to 10 miles to visit the market with the remainder indicating that they would travel further. Twenty-eight people responded that they would be interested in selling products at the market that were indicated as desirable by the potential consumers. The detailed results of the survey are located in the Appendix. As mentioned in the Executive Summary, it is not likely that a pure return on investment model is feasible in which all development (amortized) and operating costs are ultimately funded solely by revenue from vendor rental and event fees. With that said, there is significant interest in a farmers market and therefore we recommend the three following options, all of which require initial subsidy funding from sources other than market revenue. These options are presented in order based on the intent of the committee and public input. We recommend that if the first option is not successful, the second be pursued and if that is not feasible, then the third option be implemented as an interim effort. Option One Obtain initial grant funding for all development costs ($850,000 estimated at this time) and ongoing funding support for a portion of the operating costs for an indefinite period for the stand alone model of the market. Strongly negotiate and manage land and infrastructure costs to ensure that an appropriate market can be delivered within the proposed budget. Option Two Research and manage a process to create a cooperative use model for the project. That is, a model which would include other tenants of a site which would be mutually supportive and create a vibrant identity and higher visitation potential. Properly evaluated and managed, this option could result in lower development and operating costs while maintaining a strong identity to the market through an appropriate, contemporary agricultural architectural style for all of the structures. 28

33 Option Three If the first two options are found to be impractical at this time, we recommend a consolidated, temporary and mobile approach to the farmers market. This may include funding for mobile structures such as tents (of uniform identity) and associated support structures that could be located (via temporary lease agreement) on a site in the same high traffic/visibility areas recommended in the Traffic Volumes section. These would provide a single place to incorporate existing vendors (at the two current markets) as well as additional vendors. This would also allow evaluation of both vendor and consumer support and commitment as well as locations that the market could be located in one area for the first season and another location in the following season. When interviewed about criteria leading to the success of new farmers markets, Debbie Hamrick, Director of Specialty Crops with the NC Farm Bureau Federation, suggested that Electronic Benefit Transfer (EBT) acceptance can be critical to the success of a farmers market, particularly in a Tier 1 county, for facilitating use of the market by the Supplemental Nutrition Assistance Program (SNAP, formerly the Federal Food Stamp Program). The machines used to accept EBT can also support credit card transactions. Based on these two findings, it is recommended that a regional farmers market in Vance County consider implementation of an EBT system, to support a diversity of incomes as well as potentially help attract tourist/vacationer markets traveling on Interstate 85 to and from Virginia or to and from Kerr Lake. We find that the stand alone market as desired by the committee is feasible with fully subsidized funding for the development costs and with indefinite subsidized funding for a portion of the operating costs. As mentioned earlier in the report, grant funding opportunities exist for subsidizing both the development and operating costs. We recommend that the committee obtain full funding of the development costs through grant opportunities such as The Tobacco Trust Fund. Operating costs (as indicated in the 3-year budget), although initially greater than expected revenue can likely be reduced. We recommend that a portion of the remaining shortfall be covered by additional grant funding and possible limited subsidy from the County. We further recommend that the market be promoted heavily and managed such that it achieves a break-even condition in the operating budget within 3 to 5 years. A growing market identity, increasing revenue stream, and growth in committed vendors and consumers over that time will help to ensure that goal. The Earthwise Company is pleased to be of service in this effort and we believe that a modern regional farmers market is a valuable addition to the area and will be an important component in the restoration of the local and regional economy. The farmers market can create awareness of, and a market for, local agricultural products, can enhance better eating habits, support local growers and artisans, and provide a location for meetings and community and family activities. 29

34

35 References Carrboro Farmers Market New Bern Farmers Market NCDA&CS Piedmont Triad Farmers Market NCDA&CS Southeastern North Carolina Agricultural Center Farmers Market NCDA&CS Raleigh Farmers Market (State Farmers Market) Rocky Mount Farmers Market North Carolina Cooperative Extension Shop at Farmers Markets, Tailgate Markets and Roadside Stands United States Department of Agriculture, Agricultural Marketing Service USDA National Farmer s Market Manager Study 2006 May 2009 North Carolina Department of Transportation State Road Maintenance Unit, Mapping and Information Section 2009 AADT - Average Annual Daily Traffic Vance County North Carolina North Carolina Department of Environment and Natural Resources Division of Parks and Recreation Bryce Fleming, Park Superintendent IV Kerr Lake Recreation Area Total Attendance Data Both the Triangle Multiple Listing Services (MLS) and Triangle Commercial Property Exchange were reviewed for appropriate sites as examples for further research. 31

36

37 Appendix Kerr Lake State Recreation Area Total Attendance Per Area

38 NC Department of Transportation Traffic Volumes 34

39 Site Plan Options COALY DESIGN LANDSCAPE ARCHITECTURE 537 E. Martin Street Raleigh, NC acres 1"=40'-0" (116 Parking Spaces) 35

40 (232 Parking Spaces) COALY DESIGN LANDSCAPE ARCHITECTURE 537 E. Martin Street Raleigh, NC acres 1"=50'-0" 36

41 1.9 acres COALY DESIGN LANDSCAPE ARCHITECTURE 537 E. Martin Street Raleigh, NC "=40'-0" (7 Parking Spaces) + (2 Bus Spaces) 37

42 (108 Parking Spaces) + (4 Bus Spaces) 3.8 acres 1"=40'-0" COALY DESIGN LANDSCAPE ARCHITECTURE 537 E. Martin Street Raleigh, NC

43 2.4 acres 1"=40'-0" COALY DESIGN LANDSCAPE ARCHITECTURE 537 E. Martin Street Raleigh, NC Open Space / Demo Plots, etc Restrooms/ Office (84 Parking Spaces) 39

44 40

45 Site Design and Improvement Breakdown These estimates are based on limited information due to the fact that we do not currently have a site on which to base a concept and a budget. However, given the assumptions stated below and attempting to keep the site budget to a minimum, the associated cost estimates for site improvement and design are as follows. Site Design Typically, for a small, relatively simple site, a site engineering design package would include, at a minimum (with estimated costs for each): Site Engineering Design Package Component Cost Existing Conditions Survey (includes property boundary) $3,000 Grading Plan $2,000 Erosion Control Plan $2,000 Stormwater and Drainage Plan $2,000 Utilities Plan (water, sewer, electrical, communications, etc.) $2,000 Landscape Plan $2,000 Details Sheets (can vary but would include another 8+ sheets for details for each of the items as well as signage, parking, etc.) $12,000 Total $25,000 Construction As for construction, some items that will be included are listed below. Note that scope and cost varies widely over different sites, and these are very austere estimates. Note that these estimates represent an attempt to achieve a minimal site development budget and assume: a cleared, nearly level or pre-graded site, little pavement, no curb and gutter, few site amenities (lighting, signage, and landscaping), utilities available close to building with shallow placement, swales only with no extensive stormwater treatment structure, etc. They also assume that a local general contractor could be found that would meet these, or similar estimates. We recommend that all engineering design be performed for all master planned site work at one time and that construction be phased over time as funding is available. 41

46 Construction Item Includes Estimate Mobilization Equipment moves $2,000 Surveying Construction staking $3,000 Clearing Clearing & grubbing -0- Erosion Control Constr. entrance, silt fence, traps, etc. $5,000 Earthwork Mass grading, building pad, dress out, etc. $9,000 Storm Drainage Swales, structures, pipe, etc. $9,000 Flatwork Sidewalks, handicap ramp, etc. $10,000 Stone Base 8 ABC for paving and some for parking surface $20,000 Paving Standard duty (initial and final lifts entrance & H/C) $25,000 Curb & Gutter 30 standard curb and gutter -0- Water Main, hydrant?, service, etc. $5,000 Sewer Main and service, manholes, etc. $5,000 Electrical & Comm. Overhead and underground $5,000 Pavement Markings Entrance, handicap parking, etc. $1,000 Signage Handicap parking, etc. $1,000 Total* $100,000 *Note that these estimates are based on highly limited site information and on assumptions as follows: Stormwater system is only surface water collection with limited treatment Minimum connection length for utilities available on project side of street Minimum depth for sewer connection Limited pavement (short entrance and handicap parking only) No curb and gutter Limited site signage Limited exterior lighting No clearing and grubbing of site (site is free of woody vegetation) Limited site grading (site is pre-graded or nearly level, earthwork is balanced, no haul away or import) Minimal landscaping and no irrigation Minimal building pad preparation 42

47 Building Concepts Budgetary Estimate Vance County Farmers Market PHASE TOTALS SF COSTS General Conditions $48, $ Site Improvement $0.00 $ Concrete $39, $ Masonry $36, $ Steel Structure $111, $ Carpentry $1, $ Weather Protection $4, $ Door & Glazing $33, $ Finishes $47, $ Specialities $1, $ Equipment $0.00 $ Furnishings $0.00 $ Special Construction $0.00 $ Transporation $0.00 $ Mechanical $39, $ Electrical $32, $4.37 $ Expenses $0.00 $ Warranty Work $0.00 $0.00 sub total $396, $53.94 Overhead & profit 9% $85, $11.67 Total $482, $ Six Forks Road, Ste 115 Raleigh, NC Fax:

48 Vance County Regional Farmers Market Projected Electrical Costs Summer Watts Hours/Day Days/Month kwh/month Lighting Strip Heat Heat Pump Ceiling Fan Receptacale Summer Billing Facilities Charge 1 $ $ kw Charge 23.2 $ - kwh charge 5460 $ 0.11 $ Subtotal $ Tax 0.03 $ Total for Month $ Spring/Fall Watts Hours/Day Days/Month kwh/month Lighting Strip Heat Heat Pump Ceiling Fan Receptacale Spring/Fall Billing Facilities Charge 1 $ $ kw Charge 23.2 $ - kwh charge 4560 $ 0.11 $ Subtotal $ Tax 0.03 $ Total for Month $ Winter Watts Hours/Day Days/Month kwh/month Lighting Strip Heat Heat Pump Ceiling Fan Receptacale Winter Billing Facilities Charge 1 $ $ kw Charge 23.2 $ - kwh charge 6210 $ 0.11 $ Subtotal $ Tax 0.03 $ Total for Month $

49 $/Month Months/Year Seasonal Total Summer Billing $ $ 1, Spring/Fall Billing $ $ 3, Winter Billing $ $ 2, Annual Energy Costs $ 7, Average Energy Bill/Month $ Monthy Facilities Charge $ Demand 0-25 kw $ - Demand > 25 kw $ 7.35 First 1000 kwh Next 2, All kwh over 3, Power Costs Adjustment/kWh

50 46

51 47

52 48

53 49

54 Survey and Survey Results Vance County Regional Farmer s Market Survey Results 1. If a new, modern farmer s market were built in Henderson how often would you visit to purchase products offered there? Answer Options more than once a week once a week once a month rarely 2. Check products you would be most interested in buying Answer Options fruits and vegetables value-added products (jams, canned food, baked goods, meat, dairy, eggs arts & crafts Other (please specify) Response Percent Response Count 36.6% % % 5 2.0% 2 answered question skipped question Response Percent Response Count 94.1% % % % % 4 answered question skipped question 3. Would you attend other events at the facility (meetings, concerts, festivals)? Answer Options Response Response Percent Count Yes 88.1% 89 No 6.9% 7 answered question skipped question Would you consider renting the facility for your event if it were available to the public? Answer Options Response Response Percent Count Yes 55.4% 56 No 33.7% 34 answered question skipped question

55 5. Where do you live? Answer Options Vance Warren Granville Franklin Southern Virginia Other (please specify) Response Percent Response Count 87.9% % 4 4.0% 4 4.0% 4 0.0% 0 0.0% 0 answered question skipped question How far would you be willing to travel to visit the market? Response Answer Options Percent less than 5 miles 5-10 miles more than 10 miles 7. Are you interested in selling products at the market? Answer Options Yes No If so, what products? Reponses to What Products? crafts Handcrafted soaps and bath products made from NC native materials meat fresh eggs laser engraved arts, crafts possibly jams and possibly crafts. Not sure at this point As a wholesale distributor to vendors. I grow produce on a large scale garden produce and crafts HAND MADE CRAFTS flowers, plants Dips Clothes Veg, Crafts Crafts, vegetables Arts + crafts Response Count 14.9% % % 32 answered question skipped question Response Response Percent Count 27.7% % answered question skipped question

56 16. Variety of vegetables (okra, tomatoes, cukes, squash, beans, greens) and some fruit (pears, apples, nut, grapes) 17. Baked goods, grapes, raisins, blk berries, bl berries, paw paw, some veg. 18. Variety of vegetables / flowers / grapes 19. Sweet corn, blueberries 20. Peas + watermelons (sic) 21. butterbeans, peas, potatoes, onions, cabbage and many more pumpkins, gourds 22. Blackberries 23. Vegetables + collards, tomatos, cut flowers 24. strawberries, asparagus, bedding plants, row vegetable crops, jam, jellies, pickles 25. vegetables, baked goods, arts and crafts 26. Fruits + vegetables 27. Ornamentals, pumpkins, tree s, shrubs 28. tomatoes, okra, watermelons, cucumbers, green beans, squash, etc. 8. Do you have any additional comments on the feasability of a regional Response Answer Options Count 45 answered question 33 skipped question 56 Responses to Additional Comments Would like to be contacted ###-###-####. Don t require food vendors to have to prepare all their food in a commercial kitchen as you do now. That s why we do not sell our products at the Vance Farmers Market now! We sell in Raleigh. i would want it to be truly products that are local I think its a great idea, however, I think we should look at using existing empty buildings in Vance Co instead of building something new. Remodel what we already have here in the county. If the vendors are truly local producers, then this serves a good purpose. If they are wholesalers/distributors for non-local products, then they are just undercutting local grocery/dept stores and shouldn t be allowed to sell Great idea and a super way to help our farmers and ourselves. A market will not work if you think the people of Henderson and Vance county support it. It needs to be like the market in Asheville near I-85 where you have the all the counties in the area northern part of the state. I think an organized modern farmers market would be an asset to the community. It would draw many people both vendors and consumers. It must be located centrally and near the downtown area to have a positive effect for its own business and downtown businesses 52

57 This is a great idea to support the local growers and to encourage saving our farms from development. Take advantage of the locavore movement. This area has a lot to offer, with more creativity and energy infused into our home counties. It could truly be a boon in so many ways and is much more practical than other plans our leaders in the community have offered or implemented. I think it would be wonderful!! With growing knowledge of the importance of food and what we put into our bodies, the availability for local and fresh foods would be wonderful. Need to promote organic fruits and vegs. Can t wait for it to be built. We could really use this to draw more people to our city from out of town. More people means more money for Vance County The location should be an area that would best serve and be most convenient to Vance and surrounding counties. The market should be owned by the city or county and NOT a private entity. Needs to have a paid staff of at least 3-5ppl.Security is a must.open 3 days a wk. Ample space to grow. Marketing/PR A BIG MUST. NO FARMS.NO FOOD I would buy at the market often IF the hours allowed. Most markets are open on abbreviated schedules - few days and short hours I wonder if we would have enough participating farmers in the surrounding counties to justify the type of building that Vance County is suggesting Needs to be built near downtown. Not away from the city, so more people can buy there Vance County needs this! I think this would be a great boon to area farmers and consumers alike. As a grower I feel that it will offer an opportunity for growers to move various products to our local and surrounding communities through bulk wholesale and consumer retailer. We have tried to buy boxes of pink grapefruit from Florida in this area, but the company stopped making stops in Vance Co. because there was not enough people purchasing boxes of fruit in this area to justify the truck scheduling any stops here. I think this is an indication that this area would not have enough people to support a regional farmer s market. There has to be a large number of vendors for me to be interested. I found that Vance County seems to be vehemently against allowing farmers from other counties to participate but the greater selections brings more buyers. Why not? people coming to the farmers market would also shop in other stores, eat in restraunts, gas up cars,etc. I drive to the Farmers market in Raleigh every week now. For many in Vance County money to buy fresh foods seems to be squandered. Our population needs to be educated in proper health eating. Should be operated as a private business NO County funding Good Luck! WE NEED ANOTHER AVENUE FOR SAVING MONEY ON THE NECESSITIES FOR BETTER LIVING, EVERY SAVED PENNEY IS A PENNY EARNED FOR OTHER NEEDS. this market could be a big boost to local farmers 53

58 I would like for as many fruits and veges as possible to be locally grown ( in North Carolina or the East Coast) not bought at market from another country Vance County needs this!! Everyone is talking about the need to eat 5 a day, but being able to do so is difficult. I think people would be more likely to do so with fresh fruits/ vegs. Plus the people in the community can benefit from being able to earn money. We need to keep money in our community instead of going out of town to buy things!! This would be a wonderful addition to our community. Walmart has a monopoly in this area and Mom and Pop stores have to price their products high to just stay in business. I would be excited to see this come to our area and definitely support it by way of purchasing needed items. Thank you. Is this a mkt. for farmers that make a living selling at a farm mkt?? Who will come? To sell their products? Counties, etc. how do you get customer base in?? Who else will use the building? Who owns this building in the end? Who controls it farmers others Will farmers have a permanent stand at market 54

59 Vance County Regional Farmer s Market Survey If a new, modern farmer s market were built in Henderson how often would you visit to purchase products offered there? more than once a week once a week once a month rarely Check products you would be most interested in buying: fruits and vegetables value-added products (jams, canned food, baked goods, etc) arts & crafts meat, dairy, eggs other items (write in examples) Would you attend other events at the facility (meetings, concerts, festivals)? yes no Would you consider renting the facility for your event if it were available to the public? yes no Where do you live? Vance Warren Granville Franklin S. Virginia Other (please write in) How far would you be willing to travel to visit the market? less than 5 miles 5-10 miles more than10 miles Are you interested in selling products at the market? yes no If so, what products would you be interested in selling? (please write in examples) If you are interested in being on a contact list for updates on the market please provide contact information below ( , mailing address, phone #, etc.) or if you want to share any additional comments please provide that as well (note the address on front for additional correspondence): 55

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61 Similar Farmers Market Findings Six existing North Carolina farmers markets that are known or intended to have a regional impact were researched as potential precedents for a Vance County Regional Farmers Market. These markets included the Rocky Mount Farmers Market, the Carrboro Farmers Market, the New Bern Farmers Market, and three facilities operated by the North Carolina Department of Agriculture and Consumer Services: the Piedmont Triad Farmers Market in Greensboro, the State Farmers Market in Raleigh, and the Southeastern North Carolina Agricultural Center Farmers Market. Findings of this research are summarized below. Rocky Mount Farmers Market Market Location and Physical Structure The Rocky Mount Farmers Market is located in a former mill community and current historic district of the City of Rocky Mount, NC. The market is sited on an approximately 2.5 acre parcel of land and consists of an open air shed structure (6,000 s.f.) and an enclosed, conditioned structure (7,500 s.f.) surrounded by approximately 81 parking spaces. The enclosed structure has 18 bays that can accommodate one vehicle each, and the open air 57

62 structure has 8 bays that can accommodate two vehicles each. The enclosed building includes rest rooms, concession stand, an office, and a storage room. Hours of Operation The farmers market is currently open April through November on Saturdays from 8:00 a.m. to 1:00 p.m. and June through August additional hours on Fridays from 3:00 p.m. to 6:00 p.m. Business Structure of the Market The market is managed by the Nash County office of the North Carolina Cooperative Extension Service. A part-time market manager coordinates the daily market operations. A Farmers Market Advisory Board sets and adjusts market operational guidelines. The board is composed of farmers, customers, and local neighborhood members. Vendors are not required to pay an annual fee for use of the market, and daily fees are currently set at $5. The market structures are available for rent during times other than the farmers market hours of operation. A rental fee is currently set at $300 per day for facility rental; however, governmental entities are currently exempt from fees. The market manager stated that the facility has only had two paid events for 2010 as of November. According to the market manager, this farmers market is almost completely subsidized by the county, without expectations that it will be self-sufficient in the future. Current revenues are approximately $6,000 annually, and expenses approximately are $39,000. Vendors There are currently 73 certified vendors of the Rocky Mount Farmers Market. Of these 73 vendors, 70% are farmers, 20% crafters, 7% sell value-added farm products, and 3% sell cut flowers. The vendor attendance averages 22 vendors in the spring, 25 in the summer, and 20 in the fall. The market requires vendors to be certified to sell at the market and vendors are permitted to sell only those products which they actually grow or produce. Farmers are allowed to be absentee and certify someone to sell for them at the market. Customers The average number of customers attending the market is around 500. According to the 58

63 market manager, customers travel from Rocky Mount, Nashville, Wilson, and Tarboro to attend the market. What works well? There was an existing tent farmers market with about 20 vendors in Rocky Mount when this market was developed. Strategically, they moved this tent market closer to the current market location before it was built to accustom customers to the new location. What would they change? The two structures are too close together to allow for movement of vendor vehicles in and out efficiently. Though this is less than ideal, poor soils on the site required the buildings to be closer together than originally planned. Additional general observations This market is active only one-half day per year for most of the year. Therefore, the facility is empty, other than manager s activity, and unused for the majority of the year. Carrboro Farmers Market Market Location and Physical Structure The nationally recognized Carrboro Farmers Market is located near Chapel Hill, NC in the former mill village of Carrboro. It is located on the1.7 acre Carrboro Town Commons adjacent to City Hall. The market consists of two open air structures in an L-configuration linked together by a gazebo that often houses special events. On market days, vendors back up to the two structures as well as pitch open air tents in the green space behind the structures to create a pedestrian loop around the Commons property. All farmers enter the market area from one entrance in the same direction. Pedestrians can enter the market from four corners of the site and walk in both directions of the twosided vendor loop. In addition to the market structures, the farmers market has bathroom facilities and a playground for children. 59

64 Hours of Operation The farmers market is currently open spring and summer Saturdays from 7:00 a.m. to noon, fall and winter Saturdays from 9:00 a.m. to noon, and Wednesdays from 3:30 p.m. to 6:30 p.m. Business Structure of the Market The Carrboro Farmers Market is a non-profit run by a volunteer Board of Directors that is elected by the general membership. A market manager and special events coordinator support the board and the daily market operations. The market site and structure are a part of the Carrboro Town Commons, owned by the town and operated by the town s Recreation and Parks Department. Vendors pay an annual membership fee of $50 and a daily selling fee of $14 for one space, $35 for two spaces, and $70 for three spaces on Saturdays and $7 on Wednesdays. The market structures are available for rent during times other than the farmers market hours of operation. The rental fees are $100 for up to four hours of use and $150 for more than four hours of use. Revenue and expense data for the market was not available at the time this report was prepared. Vendors The market has 86 current vendors. 82% of these vendors are farmers, and the remaining 18% are comprised of prepared food vendors and crafters. The vendor attendance averages 75 vendors in the spring, 65 in the summer, 42 in the fall, and 25 in the winter. The vendors are all from within 50 miles of Carrboro. Customers The Carrboro Farmers Market reports upwards of 5,000 customers on a mid-summer Saturday and upwards of 1,500 customers for a mid-summer Wednesday market. The draw for customers is regional. According to a poll from a 2010 customer survey according to zip code 54% of customers came from Chapel Hill, 14% from Carrboro, 5% from Durham, 2% from Raleigh, 2% from Mebane, 2% from Hillsborough, 2% from Saxapahaw, 2% from Holly Springs, 3% from Efland, 4% from Pittsboro, and even 9% from out of state. What works well? Three very important features make the Chapel Hill/Carrboro Farmers Market truly a farmers market. The vendors themselves produce all goods sold at the Market. Everything comes from within a 50-mile radius of Carrboro, and you will also be talking to and buying 60

65 from the growers themselves, as vendors must represent their own products. Kelly Clark from What would they change? The market manager did not indicate anything that the market would change given the chance. She did mention that there is limited parking at the Town Hall location, but as she stated, and as a map on the website indicates, there is more available parking at nearby public and private (Saturday only) lots throughout the town of Carrboro. New Bern Farmers Market Market Location and Physical Structure The New Bern Farmers Market has been in existence in various locations throughout the town since settlement of the town in 1710, according to one of the three current market coordinating staff. The current market is located in downtown New Bern, at the intersection of Front Street and Hancock Street. The current market structure was originally an open air building, but has been modified with garage doors. It consists of 20 bays that measure 12 feet by 12 feet each. Most of the bays are divided in half to allow for two vendors per bay, so they can house a total of 40 vendors. The structure includes restrooms and an office and storage area. The site in front of the building can accommodate three vendors on either side. Some larger vendors set up outside the back door. This market is surrounded by a brick and iron fence so there is enough room for customer parking all around the building. Vendors must unload everything into their market stall and move their vehicles to a designated area outside the fence. There is also an empty parking lot across the street as well as a bank parking lot that are available to customers on the busiest market days. 61

66 Hours of Operation The farmers market is currently open year round on Saturdays from 8:00 a.m. to 1:00 p.m. Business Structure of the Market The New Bern Farmers Market is a non-profit run by a volunteer Board of Directors that consists of one-third appointed members (e.g. commissioners, alderman), one-third vendors, and one-third community members for a total of 15. The market appears to be coordinated by a three member coordinating staff. The coordinator we spoke with was also a vendor at the market. Revenue data was not available; however, the coordinator with whom we spoke indicated that the market currently covers all of their expenses. The land the market structure resides on is owned by the city. The market pays about $1 per year to lease the land. The land was built through a grant award. The market s Board of Directors maintains the building. The market website indicates that the market structure is also available for rental to organizations, clubs, groups or individuals for parties, receptions and other special events. Vendors pay an annual membership fee of $25 and a daily selling fee of $15 for a full inside space, $8 for a half inside space, and $8 for an outside space. Vendors Currently, the market reports 104 vendor members with an average of 40 vendors selling at each market. Due to the number of vendors this year, there were vendors set up outside the structure every Saturday through the summer. The market coordinator reports that half of the attending vendors are farmers in the summer and more than half are crafters in the fall. She also reported that about five years ago, the market lost approximately half of their farmer vendors due to aging out and no young farmers seem to be replacing them. The vendors are regionally based from as far away as a 1.5 hour drive. Customers Current customer attendance is pending based on a survey that Master Gardeners conducted over the last few months. Customers primarily include residents of downtown New Bern and nearby communities, some tourist traffic from Tryon Palace and the nearby hotel. The market manager noted that more than half of customers are retirees. Although the main attraction is the produce and plants, there are also fine quality handmade crafts: quilted placemats and napkins, table runners, wooden benches and planters, soap, decorated flowerpots, silk flower arrangements and dried wreaths. And if sparkly things catch your interest, there are also jewelry vendors with glass beads, necklaces, and earrings. 62

67 What would they change? The structure is heated but is not well sealed and is not insulated. This restricts its use some due to issues of comfort and animals coming into the structure through unsealed areas. NC Department of Agriculture and Consumer Services Piedmont Triad Farmers Market Market Location and Physical Structure The Piedmont Triad Farmers Market is located just off exit 208 of Interstate 40 in the City of Greensboro, NC. The facility opened in May It has good visibility from the Interstate and was designed as a destination, including not only the farmers market but also a privately run restaurant and garden center. Its property abuts the interstate, and therefore has a large messaging sign to alert interstate drivers of its presence. The site consists of two open sheds serving as retail farmers areas, an enclosed retail building, a refrigerated wholesale building, a retail garden center and a restaurant. Circulation for the market is set up with one way in and two ways out. Hours of Operation The farmers market is currently open year round, Monday through Sunday from 7:00 a.m. to 6:00 p.m. Business Structure of the Market The Piedmont Triad Farmers Market is owned and operated by the North Carolina Department of Agriculture and Consumer Services. Staff of the market includes an on-site market manager and assistant manager Google - Map data 2010 Google - According to the manager, the market is currently at a break even point between revenues and expenses. The revenues, based on fees and leases, have been growing every year, even through this slow economy. Current revenues were reported to be approximately $900,000 from fees and leases. According to the market manager, the market received a small appropriation this year from the State, but did not use it. 63

68 Farmers area daily fees for farmer vendors range from $6 to $15, with a $6 restocking fee. Non-farmer vendors, including crafters, baked good sellers, etc., pay a $30 daily fee. Out-of- State vendors pay double fees. Delivery, storage, electrical, dumpster and forklift fees apply as well. A complete fee schedule for this market is included in Supporting Data. Vendors There are in the order of 300 active vendors of this farmers market. Approximately 95% of these vendors are farmers. The remaining 5% are nonfarmers and are only allowed as vendors on a very limited basis under very specific criteria. Farmers are required to go through a certification process in order to sell in the retail farmers areas. The average number of vendors attending the market in the peak season between April and July is 80 to 90. In the winter, vendor attendance drops to four to five with cold season crops, sweet potatoes and some with firewood. Christmas trees are also sold from the farmers area in the winter. According to the market manager, the retail building drives the market through the winter because there are local source restrictions in the facility. The majority of the market vendors come from Guilford County and abutting counties including Rockingham, Davidson, Randolph and Forsyth Counties. There are also a number of vendors from Stokes County. Some seasonal vendors come from Henderson County with apples as well as from Brunswick County with blueberries. A few vendors travel from Richmond County, the Sandhills area, east of Raleigh, and Lincoln County. Customers Customer attendance of this market ranges from 5,000 to 12,000 per day on Saturdays across the year, with a total of 1.7 million customers entering the site in According to a survey 64

69 of customers from approximately eight to nine years ago, these customers travel from fifteen surrounding counties, with the majority coming from Guilford County and abutting counties. What works well? The market manager recommends a one way in circulation pattern with a regional market in order to monitor incoming customers and vendors. Vendors pay their daily fee upon entry or restocking. The market has extremely good visibility from the adjacent Interstate and was designed as a destination with a restaurant and garden center on the property. What would they change? Of the two current open air farmers areas, one was originally constructed as a trucker wholesale area. The wholesale market here was not utilized as quickly and completely as the retail. The number of farmers wanting to sell retail was underestimated, so within the first few years of the market, trucker wholesale was discontinued, and both open air buildings were designated as retail farmers areas. If two retail sheds had been the original intended use, the market would function better for pedestrians if the two open air structures were closer together. NC Department of Agriculture and Consumer Services Southeastern North Carolina Agricultural Center Farmers Market Market Location and Physical Structure The Southeastern North Carolina Agricultural Center Farmers Market opened in late 1999 on 84 acres off of US Highway 74. This location is approximately six miles outside the city limits of Lumberton, NC. It is an agricultural center for the southeastern region of North Carolina, and includes a farmers market area as well as a 50,000 s.f. multi-purpose building for horse/ cattle shows and other large events. The farmers market area consists of three 10,000 s.f. structures including two open-air, steel farmers sheds and 65

70 one steel farmer shed enclosed with concrete block. One of the open sheds is currently used by one farmer who sells wholesale. The enclosed farmers shed is the primary building used by retail vendors, and the other open shed is used only periodically. The multi-purpose facility ( multibldg.htm) is open seven days per week. On average, it is booked every weekend and two-thirds of the year during the week. There were 200 bookings in Most events are one day in length and include weddings, graduations, and trainings for public school teachers and companies. Hours of Operation The farmers market is currently open year round, Monday through Saturday from 8:00 a.m. to 6:00 p.m. and Sundays from 1:00 p.m. - 6:00 p.m. Business Structure of the Market The Piedmont Triad Farmers Market is owned and operated by the North Carolina Department of Agriculture and Consumer Services. Staff of the facility includes an on-site market manager. Based on the reported revenues and expenses, the facility is not currently paying for itself with annual expenditures approximately $450,000 and revenues ranging from $121,438 in 2008 to an extrapolated $84,071 in 2010 (extrapolated from data provided through September). Farmers area daily fees for farmer vendors are $15 for North Carolina farmers, with a $6 restock fee and $25 for out-of-state vendors with a $12 restock fee. Delivery, storage, electrical, dumpster and forklift fees apply as well. A banquet room in the enclosed retail building is rented for $200 per day. A complete fee schedule for this market is included in Supporting Data. Rental rates for the multi-purpose building range from $125 for a half day in a small meeting room to $700 for a full day in a large meeting room. Vendors The market currently has four vendors, most coming from within 15 miles of the facility. Three of these vendors are farmers and two are crafters. According to the market manager, all of the farmers also engage in value-added product sales. Customers According to the market manager, the market draws customers primarily off of Highway 74 as they travel to and from North Carolina beaches. There is also some customer traffic off of Interstate 95. The overall facility has seen a drop in customer attendance from 2008 to 2010, with a gate count (includes attendees of the market and events in the multi-purpose building) of 153,339 66

71 for 2008, 107,002 for 2009, and an extrapolated gate count of 91,349 for 2010 (based on gate count data through September). The market manager attributes this drop in attendance to construction on Highway 74 over the last couple of years as well as the economic downturn. There were more farmers and crafters attending the market prior to the new road opening. What would they change? There is currently a lot of unused space at the facility. They are using one of the open sheds for banquets, family reunions, graduation parties, etc. The half of the building that is not currently being utilized by vendors is also being used for banquets. The market manager stated that there are approximately 19 to 20 banquets in the facility per year. According to the market manager, lack of visibility of the market from Highway 74 and their distance from town is a limiting factor to the market. NC Department of Agriculture and Consumer Services Raleigh Farmers Market (State Farmers Market) Market Location and Physical Structure The State Farmers Market is located on 75 acres of state owned land a short drive northeast on Lake Wheeler Road, as accessed off of Exit 297 of Interstate 40 in the City of Raleigh, NC. The market facilities include 210,000 s.f. of roofed area. These facilities include 30,000 s.f. of open-air facilities for farmers to sell fresh produce, plants and other value-added items produce on the farm; a 15,600 s.f. retail building (Market Shoppes); a large truckers building for large volume produce sales; a wholesale terminal where five wholesalers supply grocery stores, restaurants, institutions and roadside markets; over two acres of space leased to a garden center (Market Imports); and a Seafood Restaurant and the State Farmers Market Restaurant. Hours of Operation The farmers market is currently open Monday through Saturday from 5:00 a.m. to 6:00 p.m. and Sundays from 8:00 a.m. to 6:00 p.m. 67

72 Business Structure of the Market The State Farmers Market is owned and operated by the North Carolina Department of Agriculture and Consumer Services. Staff of the facility includes an on-site market manager. Total annual expenditures of the market were reported to be around $1.2 million. The manager stated that the annual revenue of the farmers market is not tracked. Although 65% of the revenue of the entire facility is generated through long term leases such as the restaurants and wholesale dealers such as Fords Produce and Wards Produce. The remainder of the revenue comes from daily vendor fees. Daily fees for the farmers area are $15 for North Carolina farmers with a $6 re-stock fee and $30 for out-of-state farmers (re-stock fee of $12) as well as crafters, baked good sellers, etc. Space fees for the truckers building and the retail building are $15 per day. Storage, use, delivery and other fees apply as well. A complete fee schedule for this market is included in Supporting Data. Vendors Currently, the market reports 400 direct or indirect vendor members. 80% of these vendors are farmers, 5% crafters, 5% value-added producers, and 5% sell cut flower. On average, 60 vendors sell at the market in the spring, 100 in the summer, 80 in the fall, and 15 in the winter. Vendors primarily come from a 60 mile radius of the market, and mostly from Johnston, Sampson, Harnett, and Wayne Counties. Customers The market reported 3.5 million customers attending the market in Fridays, Saturdays and Sundays are the busiest days for the market. The market averages about 25,000 customers on Saturdays. The customer base is also from an approximate 60 mile radius, but travelers off of Interstate 40 are also drawn to the market. What would they change? The layout of the market works well, according to the manager; however, he says they could use more daily rental space. The circulation for vendors works well, but the pedestrian circulation patterns could be improved upon. The manager indicated that the building design works fine, but if they were to do it over again, they would build it differently. He did not provide any more detail on this. 68

73 Other Interviews As a part of this study, several other agricultural professionals were contacted based either on their experience with farmers markets or their association with agricultural knowledge of the region. Debbie Hamrick, Director of Specialty Crops with the NC Farm Bureau Federation was instrumental in starting a statewide listserve dedicated to the topic of farmers markets. In Ms. Hamrick s opinion, based on her experience, there are a number of critical issues that need to be addressed for the success of a farmers market. These include, but are not limited to: o o o Commitment from vendors to ride it out [until the customer base is strong enough]. A management structure that includes someone to make sure things happen including: o Advertising. o Fielding vendor or customer complaints. o Provide an interface with the local government entity, be it a city or county Diversity of products in place where there is a customer base. Location, location, location. Electronic Benefit Transfer (EBT) acceptance. o Particularly in a Tier 1 county for Supplemental Nutrition Assistance Program (SNAP, formerly the Federal Food Stamp Program). Accepting credit cards at markets could help vendors attract tourist/vacationer markets in many locations across NC, such as the Lake Gaston area, routes to/from NC beaches, etc. Tie in with a local governmental infrastructure seems to aid success. Groups with a plan succeed faster than those without. Reach out to cooperate with other farmers markets and events in area. (Tie into and leverage) o e.g. North Raleigh, Wake Forest, Oxford o The hot pepper festival in September in Oxford Distinct discussions about who exhibits. o Crafts or not? Crafts only on some weekends? If so, credit card acceptance is really a plus here to reduce competition for the small amount of cash people carry around these days. This tends to raise attendance on these weekends. Think about ways to make it more cost effective for farmers to reach the markets because, If it isn t profitable, it isn t sustainable for the farmer. Can only the farmer sell at the market? Can farmers sell for other producers? Professionalism of the vendors must be considered so a liability does not come back to the market itself (comment was relative to vendors holding product liability insurance, etc.). 69

74 Kevin Hardison with the North Carolina Department of Agriculture and Consumer Services Marketing Division was contacted due to his area of expertise in farmers markets. Mr. Hardison stated that there are a lot of new farmers markets developing around the state. In some places there are more markets than growers. He said it is important to understand how many other farmers markets are in the area and what competition a new market might pose to them. He also indicated that good signage is critical to the success of a market. The Marketing Division is currently working on a certified farmers market program that will have associated signage. The Division is also working on opportunities to provide more marketing materials to farmers markets in the future. Carl Cantaluppi, Agriculture - Horticulture Area Agent with the Granville County office of the NC Cooperative Extension Service was contacted regarding his experience heading up a wholesale auction in Granville County as well as to discuss his experience with three existing farmers markets in Granville County. Mr. Cantaluppi was involved in the establishment of the now defunct Oxford Produce Auction. This wholesale auction ran from According to Mr. Cantaluppi, they could not find enough large volume buyers or sellers to make it successful. The project involved a Golden Leaf Foundation grant for $53,000 for a small walk-in-cooler and a forklift truck, both of which have since been auctioned off. Mr. Cantaluppi stated that currently there are no produce auctions functioning in North Carolina. He added that the most promise for income for farmers is in retail, not in wholesale. Mr. Cantaluppi works with three farmers markets in Granville County including The Oxford Farmers Market, a small market in downtown Oxford. The Creedmoor market currently has five to six farmers with no room to expand in its current location. A few have left recently to attend the Wake Forest Farmers Market. Mr. Cantaluppi obtained a grant from RAFI to start a farmers market in Roxboro. The market is located on county land and the grant paid for an open air structure. There are currently 6 to 10 vendors at this market, with gross sales for 2010 of $14,000. Based on his experience with farmers markets in Granville County, Mr. Cantaluppi insists that the success of a farmers market is based first and foremost on having enough farmers / growers. If you don t get committed growers, it will be a futile effort. He reinforced that a successful market requires committed commercial growers that grow and sell produce as a livelihood. He also stated it is important to have the market on a well-traveled road to obtain the customer traffic. 70

75 Tracy Perry, Agricultural and Natural Resource Technician with the Franklin County office of the NC Cooperative Extension Service was contacted to discuss his opinions regarding a regional farmers market in Vance County. We were referred to Mr. Perry by Martha Mobley, Agriculture Extension Agent. Mr. Perry works with limited-resource and traditionally underserved farmers in Franklin County. According to Mr. Perry, there is an existing farmers market in Louisburg that currently has 28 to 29 vendor members. About six to 10 vendors sell at the market each week. Five to eight of these vendors are farmers. The market has open hours on Tuesday, Friday and Saturday. Mr. Perry indicated that 25 or more of the limited-resource farmers that he serves may be interested in a regional farmers market. He believes this is a great idea for all counties in the region. Additionally high percentage of farmers in Franklin County are interested in a produce and meat (swine and poultry) value-added facility. Other Farmers Markets in the Region Vance County, NC Henderson 2 markets Granville County, NC Oxford 1 market Roxboro 1 market Creedmoor 1 market Franklin County, NC Louisburg 1 market Warren County, NC Warrenton 1 market Mecklenburg County, VA Chase City 1 market South Hill 1 market 71

76 MLS Property Map 72