In tough times, Galt Market keeps vendors with rent discount

During the 15 years Valerie Lupear has been a vendor at the Galt Market, she and her husband, Don, have never received a discount on rent. She said the January and February discount was greatly appreciated since sales were significantly down. (Maggie Creamer/News-Sentinel)

In tough times, Galt Market keeps vendors with rent discount

By Maggie Creamer
News-Sentinel Staff Writer

Thursday, March 26, 2009 6:18 AM PDT

Comments (1 comment(s))

As customers picked up shoes that vendor Maggie Pan had laid out on boxes, she talked about how the Galt Market is coming back to life.

Her business was down about 30 percent in January and February, but last Tuesday, she noticed more people strolling by her booth.

Pan and other monthly vendors paid less rent in the first two months of the year in the city’s attempt to retain vendors.

“Everybody is having a hard time through the economic downturn ... We want to set us up to succeed down the line so we still have a market in 10 to 20 years,” said market manager Armando Solis.

Solis can tell the discounted rate has been successful because vendors are actually buying more spaces, which never happens at the beginning of the year. He said people usually downsize.

The market is expected to make $2.8 million by the end of the fiscal year, which ends June 30. That revenue is short of the expected $2.85 million, but the Galt City Council has already taken care of the shortfall through budget adjustments.

The market funds the Parks and Recreation Department’s operating expenses.

Galt Market fees at a glance

Monthly fees for a 10-by-30 feet space on Tuesdays:
Current fee: $40
January 2009-February 2009: $25
After March 2009: $37

Monthly fees for a 10-by-30 feet space on Wednesdays:
Current fee: $27
January 2009-February 2009: $20
After March 2009: $30

Monthly fees for a produce space on Tuesdays or Wednesdays:
Current fee: $32.50
January 2009-February 2009: $25
After March 2009: $32.50

For more Galt Market information including hours, directions or weather, call (209) 366-7160.

For the past 15 years, Valerie Lupear has been at the Galt Market every Tuesday selling jewelry with her husband, Don, at “Touch of Gold.” Her booth is filled with rolls of gold chains and rows of shiny charms. In her many years at the market, she has never received a rent discount.

“It was so wonderful. We had so many bad days, weatherwise,” Lupear said.

To keep her prime spot at one of the market’s entrances, she would have still set up her booth with or without the discount. But she knows some vendors might have lost their place.

At a December meeting, the Galt City Council approved the reduction in rent after some vendors told Solis they did not know if they could continue to afford spaces in the market during the slow winter months.

In the middle of a long row of people yelling produce prices, Ke Moua helped his mother sell vegetables. He said the discount helped his family during the off season, when not many vegetables grow.

The rent reductions cost the city about $100,000, but it was absorbed into the Galt Market and Parks and Recreation budget. That included a $30,000 reduction in the market operating costs with employees handling traffic control in-house. They also cut projects and other operations.

The market made $3.03 million in the 2007-08 fiscal year, which was a $464,308 less than the previous year. The most the market has pulled in was $3.6 million in the 2005-06 fiscal year.

To make up for the shortfall between revenue and projected revenue, in December, the council made cuts to overtime, training, uniforms, postage and equipment rental.

Also, by keeping the recreation supervisor position open, the city is saving $69,671 annually. Also, the Littleton Community Center roof project cost $40,000 less than expected.

The market has also saved money by eliminating projects for landscaping, and tables and benches. City staff also predicts the market will receive an additional $25,600 in ATM fees, late rent and overnight parking. In total, staff was able to save $167,308 through cost-cutting measures.

Starting in March, the market will also have a new rate structure that was approved at the December council meeting. The goal is to decrease the fee on Tuesday, when there are fewer vendors, and then raise it on Wednesday, when there are more.

Because of a decrease in tenants, the Galt Market has also downsized and restructured to make the aisles wider. The market has 64 fewer spaces, for a total of 822, but when the economy recovers, it will add back the spaces if necessary.

Now that the weather has improved, more vendors are coming back, and the market sold all 822 spaces on March 18, Solis said.

On that day, Ramir Perez said the crowd has been better, but his jewelry business is still not doing great.

“There’s less profits, so you have to give more deals,” Perez said.

Contact reporter Maggie Creamer at maggiec@lodinews.com or read her blog City Buzz.

Reader Feedback

alf wrote on Mar 27, 2009 9:43 PM:

" i do not understand why these discounts were given. $30 for a month's rent. seems pretty low to me. if you cannot make $30 a month, you need to change what you are selling. $30 can be made in one garage sale without any advertising. c'mon, do you really think these vendors would go elsewhere? i do not. "

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