"The city of Toledo yesterday pledged to pay Erie
Street Market vendors money they are owed from sales of their
merchandise, Mayor Carty Finkbeiner announced.
The city took over day-to-day management of the Erie Street Market Nov.
13 after CitiFest Inc. announced it had run out of funds.
"The mayor understands the dilemma of the vendors down there and that
CitiFest left them high and dry for two weeks of their own money," said
Andy Ferrara, a city economic development specialist. "So the city has
made a decision that we will work to get them that money out of market
revenue."
About 10 vendors are owed a combined $3,100, Mr. Ferrara said. "It
could be a combination of money and credit for rent in the future," he
said.
A statement from the mayor said the funds in question were collected by
CitiFest in October and November, but not presented to the vendors.
Since the city took over management of the market, vendors have been
paid for their sales. The money in question is owed by CitiFest - not
the city of Toledo, the statement said."
http://toledoblade.com/apps/pbcs.dll/article?AID=/20080105/NEWS16/801050...
If you want to understand what a flop the market is, consider that ten vendors made $3,100 in two months. That's an average of $310 per vendor in TWO months. If the market is open 40 hours per week... well, you figure it out.
That's not worth even getting out of bed for.
...what I've already written, I'll just post the link:
http://thurbersthoughts.blogspot.com/2008/01/erie-street-market-question...
more mayoral spin on Citifest and the ESM - it's getting pretty old.
I read your informative blog on the subject, Maggie, and I agree that the city is not legally responsible for ESM debts in general. But, I wonder about the money owed to the vendors. As I understand it, people purchased items from those vendor booths and the money ended up with CitiFest. I suppose the agreement was to reimburse the vendors for the items that were sold out of their booths. If that money isn't returned to the vendors, hasn't a criminal act been committed like taking money under false pretenses? It is the vendors' money, after all. And certainly there is a moral requirement to give that money back.
...question, Pete, but I don't know the answer because I don't know the terms of the vendor contracts.
Does the ESM get some sort of commission or fee off the top for collecting these payments in the first place? Is the vendor money not paid because Citifest paid other expenses instead - like payroll taxes or other mandatory items, counting on money from the city to make the payments to the vendors?
I believe a profit/loss statement on the ESM and Citifest would answer your question and show how the monies were expended.
Either way, I agree with you that the vendors deserve to be paid - but I am not convinced that the obligation to make those payments rests with Citifest, considering the terms of their contract.
Maybe it is the administrations way of admitting guilt, what with the poor oversight and all, that the outstanding sums will be picked up by us and the administration of the market continues and who knows what is next.