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Market Square's future discussed

By Craig Kapitan - Express-News

Under private management, Market Square could start generating profits for San Antonio instead of a financial loss, according to a soon-to-be-unveiled study commissioned by the city.

But if not properly handled, such an option also risks diluting the popular tourist area’s “local unique character,” the study also noted. About 50 Market Square vendors, meeting Thursday to discuss the findings with city officials, greeted the study’s ultimate suggestion — that the city turn over management to a third party — with ambivalence and unease.

The report, which included similar recommendations for management of La Villita, is expected to be presented to San Antonio’s Community Development Advisory Committee at the end of the month.

Although parts of Market Square are privately owned, the city owns the bulk of land on which the Mexican-themed stores and restaurants sit, and it has been responsible for marketing and upkeep of the premises.

Last fiscal year, the city took in nearly $1.3 million in revenue from rental space — but operating expenses are exx pected to top that by almost $227,000, according to the report by consulting company Urban Marketing Collaborative.

Private-sector management would present the best chance of increasing rent to rates more closely resembling the market, although a nonprofit trust also could have some effect, the agency determined.

For many vendors, increased marketing that could come with a different management model seemed like a great idea. The possibility of higher rents, however, didn’t.

“This is our livelihood,” said Claudia Peña, speaking in Spanish after the meeting as she pointed out that some merchants have done business at Market Square for generations. A tenant for 11 years after starting out selling fruit on the street, she expressed worry that a more profit-driven model involving higher rents and shorter leases could damage what she has fought to build for herself.

Market Square does offer San Antonio more than the potential for profit, an executive summary of study acknowledged. A survey conducted by the consultants indicated it is the third-most popular tourist destination in San Antonio, after the River Walk and the Alamo. And it has the potential of being the best Mexican-themed market in the country — if managed well, the report summary states.

Jaime Herrejon, owner of Little Mexico Imports and president of El Mercado Merchants Association, said it is definitely good to see an interest in improving Market Square. But tenants know the area best and should have a place at the table if a nonprofit trust is formed, he and others said.

If such a route is selected, the group could submit a proposal like anyone else, city officials indicated.

The city first solicited the management study in 2007, one year after the Convention & Visitors Bureau released its Destination SA study that also suggested, among other things, contracting with an outside vendor.

The City Council will ultimately decide what the best option is, said Colleen Swain, assistant director of the city’s Downtown Operations Department. Another option the council could choose is to pump more money into bolstering the city staff. But, she told the merchants, “the study clearly says the city shouldn’t run it unless there are some drastic changes made.”

“The city’s core business is not retail,” she said. “That’s what we’ll present to council.”

Tenants’ unease with change is nothing new, said Robert Santiago, who owns Earth to Market and Santiago Mexican Imports. He recalled a similar sense of panic a decade and a half ago, when the city decided to restructure the Farmers Market Plaza. Some businesses didn’t make it, but most people now agree the move was a success that brought more visitors and benefited everyone, he said.

Though Santiago said he doesn’t personally know if a nonprofit trust or a private contractor would be better for the area, he’s open to new ideas.

“The fear that everyone has — of the unknown — drives a lot of the comments from the tenants,” he said. “But we can all find common ground. I think we just need to have faith that the city really does want us to continue in a manner that is better for both parties.”

Who knows what the future holds for the Market Square; I always thought that it could be expanded upon some.