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Economic development takes over Western Market chalets; staff proposes revised fees and vendor services

2666292 · March 10, 2025
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Summary

Economic Development staff will assume management of Western Market chalets this season, propose new common area maintenance (CAM) fees, shortened season through Oct. 31 and vendor support services including business workshops and a pitch competition.

City development staff told commissioners they will take over management of the Western Market chalets for the 2025 season and outlined recruitment, programming and proposed fee changes intended to support vendor growth and transition to brick‑and‑mortar.

Development analysts Alexander and Jocelyn Hines said the department will lead chalet operations with support from a 12‑member chalet committee composed of staff and local business partners. The department reported about eight returning vendors and 10–11 new applications for the season. The chalets function as a low‑cost business incubator for entrepreneurs testing products and business models.

Planned vendor supports include three business workshops, mentorship through Northern Initiatives, and a DDA‑led pitch competition that will award one winner full season rent coverage. Staff recommended shortening the chalet season to Oct. 31 because attendance and vendor comfort decline in colder months; vendors may remain open additional hours at their discretion.

Staff presented a revised rental rate table by chalet size and proposed common area maintenance (CAM) fees to cover outsourced costs such as sandlot maintenance, porta‑johns, trash pickup and utilities; the proposal will eliminate separate air‑conditioning and electricity fees in favor of the CAM structure. Staff said CAM fees also help simulate the operating costs vendors will face in a permanent retail lease.

Commissioners thanked the clerk’s office for prior management and asked for background on the eliminated electricity/AC fees and details on CAM fee calculations. Staff said the AC/electricity fees were inconsistent and sometimes abused, and CAM fees will fund contracted maintenance previously done internally. Commissioners also asked about parcel ownership and relocation plans; staff said the chalets sit on a Downtown Development Authority parcel marketed for sale and were built to be movable if development occurs.

Staff will seek formal fee approvals at the commission meeting and continue recruitment, mentorship and marketing for the 2025 season.