Council reveals the £1.9 million Victorian Market revamp needed 'special measures' to make it successful after 'perfect storm' of challenges
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The revamped Victorian Market food hall needed “special measures” to make it successful as it failed to meet income targets eight months after the £1.9 million project opened, with almost half the units standing empty.
The project was a keynote investment by Highland Council and Inverness’s Common Good Fund, but it has got off to a slower than hoped for start.
The market boasts perhaps the highest concentration as well as one of the most varied food offerings in the region, ranging from bakers to alcohol outlets, vegan and sea food, sushi and salads, and most are very busy.
But the lack of new tenants coming in is a worry for the council as it is now offering leases on favourable terms to encourage more businesses to consider moving in.
Of 15 units just eight are currently rented out and one of those is for week to week availability for pop-up food businesses to come in and showcase their produce to boost their profile with consumers.
Special measures
The council had to take “special measures” to ensure the market’s success because income had been projected on a “fully let portfolio”.
Added to that are other “economic pressures” which council officials say led to “a perfect storm requiring special measures to be taken to ensure the success of the market”.
They added that “these measures have understandably impacted initial income projections.”
City manager David Haas said: “The letting of the new units within the refurbished Market Halls is progressing with seven of the 15 available units let, one under offer and one available on flexible weekly terms.”
Cut price rent
But he added: “To encourage tenants to sign up to a new five-year lease, a one year rent-free period and a 50 per cent reduction on service charge is being offered.
“This is in line with market conditions and common practice for commercial developments.
“Not only will this encourage tenants to commit to the market, but the aim is to keep it competitive with other opportunities.”
Within the report to be considered by the council’s Inverness city committee Mr Haas added: “The business plan provides for income levels based on full recovery of service costs via a service charge and for a fully let portfolio.
“The implications of the significant economic pressures outwith our control have provided for a perfect storm requiring special measures to be taken to ensure the success of the market.
“These measures have understandably impacted initial income projections.”
