Public Retail Markets in Cleveland, Ohio

The interest in Cleveland in public food markets dates back to a time before the city was incorporated. As in the development of most other cities, the city fathers set aside certain areas for market places. In 1830, before the city was incorporated, the village trustees passed an ordinance regulating markets. Records show there were four public markets by 1837. In 1839 the city built a fifth market house, and appointed a market clerk to administer its market holdings. The city record of 1878 mentions a “Market Committee,” a part of the city council. The records show that certain regulations were instituted, and charges were made to sellers for use of publicly owned markets, the fees going into a market fund.

Central Market

Prior to 1847, when Central Market was first built, the downtown central market was located on Michigan Street, about a block from the present Public Square and near the rear of the Higbee Company building. This market was used for marketing food products from 1839 to 1855. At about the latter date, a prominent Cleveland family gave some land to the city at Ontario Street and Bolivar Road for use in the development of a city retail market. In 1856 the city purchased additional land adjacent to this property at a cost of $1,500. Work on the construction of Central Market was supposed to commence early in 1857, but because of opposition of retailers and gardeners to leave the Michigan Street site, it was not started until the following year. In April 1858, in order to bring matters to a head, the city council ordered the Michigan Street market house torn down. The dealers on Michigan Street, however, resisted efforts to move to the new market and remained at the old place, doing business in the street and in improvised buildings.

After the Civil War, gardeners and retailers decided to move to the Central Market building as a body, but it was found that the building was not large enough to house all of them. Because the building was simply a relocation of facilities that had existed on Michigan Street, it was not sufficiently modern to meet the needs of the operators. Therefore, the city appropriated about $40,000 and tore down the greater part of the old building to construct the market house now known as Central Market. This market house was opened for business on September 14, 1867, and most of the tenants from the Michigan Street market moved into it at that time. Since 1867 the only improvements that had been made had consisted of reroofing, occasional painting, and the laying of a cement floor to replace an old wooden floor.

Figure 1 is a photograph of Central Market. The location of this market and other city-owned retail market places is shown in figure 2.

The cost of the original construction of Central Market, not including the value of the land that was donated, was about $41,500, which amount was appropriated by the city of Cleveland. The financing of markets by the city at that time was from an account known as the “market fund.” In 1867 the market fund was depleted. By 1872 a balance of $11,000 was accumulated, reaching $111,000 by 1877. In the following year $85,000 of the accumulated balance in the fund was transferred to the general fund and $10,000 to the gas fund. After 1888, no evidences of large balances in the market funds are shown, but it is believed that market revenues thereafter were transferred directly to the general funds of the city. No bonds or evidences of other obligations chargeable to Central Market were found after 1888. Although no records were found to show exactly where funds were obtained to repair and maintain Central Market, the opinion of those associated with the market is that these expenditures were made from current operating revenues. From the records, it would appear that the cost of the development of Central Market to the city of Cleveland was liquidated by 1878, when the city transferred accumulated reserves from the market fund to the general and gas funds.

It was not possible to determine in the course of the study the total revenues received from the city-owned markets and the amount of money that had been transferred to the general fund during the period 1888 to 1948. However, a partial record of receipts and expenditures has been maintained by the city since 1930.

A study was made of the revenue and expenditures tram Central Market for the period 1936 to 1946. During that time rents were maintained at a fairly uniform rate, yielding an income ranging from a low of $45,870 in 1940 to a high of $50,420 in 1946. The average annual income over this period was $47,755. During the same period operating expenses have averaged $11,565. Operating expenses were lowest in 1941 at $11,377 and highest in 1946 at $14,760. The average surplus or income over expenses at Central Market during the period studied was $36,190 annually. These expenditures do not include the cost of garbage removal, street-cleaning, policing, electricity, and water, nor do they include any charge for the investment, which was liquidated by 1878, or payment in lieu of taxes.

The present real value of Central Market is not known. Since it is city-owned, it is not assessed. A reliable firm or accountants in 1930 appraised the value of the site, not including the building, at $263,000. The building probably would be valued at a very low rate, but the land, at today’s prices, would probably exceed the 1930 value.

West Side Market

Between 1840 and 1864 various donors gave land to the city near the corner of Pearl Street and Lorain Avenue for market purposes. This location is directly across the street from the present West Side Market House.

It was not until 1868 that a wooden market house was built on this site. Adjacent land was used as an open-air market.

About 30 years later (1898) State legislation empowered the mayor to appoint a market house committee to study conditions and make recommendations for new market houses, particularly for the west side of the city. Although the committee recommended that a site be acquired for a new West Side market, the city council failed to approve the recommendation or to make funds available for it. In 1901 the mayor appointed a new committee which acquired land across the street from the old West Side Market site. It was on this land that the new West Side Market House was built in 1912.

This market house, in a good state of repair except for the refrigeration maintained therein, is fully used at present. It is a well-constructed market building of modern design. It includes stalls inside for retailers of meat and other food products, and a partitioned part for use by retailers of fish and sea food products. On the outside there are covered stalls where fruits, vegetables, flowers, and other products are sold. In the basement refrigeration is maintained for use by market tenants.

In 1901 the city issued $110,000 in bonds in anticipation of building a new market house on the west side of the city. These funds were used to purchase land and the buildings thereon for the new market. Owing to the difference of opinion among city officials sufficient funds were not made available to complete the market house until some time later, and the total financing was not completed until 1914. The amount of bonds issued during this period and the maturity date are as follows:

Interest rates on the bonds averaged a little in excess of 4 percent. No regular provision for amortization of the bonds was made, but $160,000 was retired by 1926 and the remaining $400,000 and all interest were liquidated some years ago. From available city records, it is shown that the total cost of West Side Market was substantially greater than the bond issues indicate. In a 1912 report of the Superintendent of Markets, the following costs are shown:

According to an estimate made by the Municipal Research Bureau of Cleveland in June 1924, an additional expenditure of $35,000 was made after 1912, to complete the remainder of the refrigeration plant. The total cost of the market house and refrigeration plant contained therein was $769,890.72. This amount exceeds the bond issues by about $110,000. Apparently, in the development of the West Side Market from 1901 to 1914, a considerable part of the cost of the market was taken out of annual operating expenses, the general market fund, and other sources.

The income and expenditures of West Side Market for the years 1936 to 1946 were studied in the course of the survey. The average annual receipts during this period amounted to $58,277, and average annual expenditures to $22,880. The average surplus of income over expenditure during these years amounted to $35,397 annually. It is not known whether the bonds issued to develop West Side Market were liquidated from the revenue from that market or whether revenues and other receipts from all markets in the city were used.

The surplus of income over expenditures, as shown above, would have been substantially greater had it not been for losses incurred in the operation of the refrigeration system in West Side Market. The average annual income during 1936 to 1946 was $19,400 from rentals of refrigerated space in the market, and the annual expenditures for the refrigeration were $30,420. This represented an annual loss of $11,020, or a total loss of $121,220 for the 11-year period. A closer analysis of the expenses of operating the refrigeration plant would show that it cannot be supported from revenues obtained from the users because the cost of engineering service is high and the plant is not operated at full capacity at all times. Moreover, the management does not have the flexibility it needs to maintain full occupancy in seasons when tenants of the market do not need the available capacity.

The present real value of West Side Market is not known, but the land value was appraised at $348,900 in 1930 and is probably worth more today. The principal market building and the adjacent covered sheds are well built and of good structural material, end they would probably be appraised at a relatively high value.

Broadway Market

The Broadway Market–the third and smallest of the city-owned retail markets–is located at Broadway and Canton Avenue. Few facts concerning the early history of this market have been obtained. It was built about 1884 and was designed to serve citizens of Newburgh Heights, which was then a high-class residential neighborhood. Manufacturing and business enterprises have developed in most of the neighborhood since the market was built, and the residential population has moved to other parts of the city.^[1]

It is not known how this market was originally financed, since records of bond issues for its development were not found in the course of this study. Apparently it was developed from revenues received in the market fund. The market is small and has never been a large factor in the distribution of food in the city of Cleveland as have been the other markets discussed.

Records of the city show that income from all sources at this market during the 1936-46 period had averaged only $2,550 annually and operating expenses during the same years had averaged $2,420 annually. During these 11 years the annual surplus of incomes over expenses had been only $130.

Other City-owned Retail Markets

Although, as has been mentioned, the city of Cleveland had tour retail markets in 1830 and another market was built in 1839, it has not been possible to find out what disposition was made of these markets during the past century. Two or three of the markets in existence more than a century ago have disappeared, and the reasons for their abandonment were not obtained in the course of this survey. Likewise, it was not possible to obtain information on the financial status of their operation or their value at the time they were abandoned.

Summary of Values and Financial Status of City-owned Markets

The value of markets operated at present by the city was not determined. A reputable firm of public accountants made an estimate of depreciated value of all city-owned markets in 1930. At that time the total value of land was placed at $616,705, buildings at $538,710, and total value of land and buildings at $1,155,415. The value of land in 1930 for Central Market was placed at $263,000, $348,905 for West Side Market (including both the land of the new market and that on which the old one was situated) and $4,800 for Broadway Market land.

It seems reasonable to assume that the value of land and probably of buildings has increased since 1930. All three city-owned markets operating at this time are three of debt. Total receipts from their operation exceed expenses.

Privately Owned Retail Market Houses

A description of retail market houses in the city of Cleveland would be incomplete without reference to the unusual development of privately owned retail market houses. Nine privately owned retail market houses were constructed and put into operation late in the Nineteenth and early in the Twentieth Centuries. Their operation has been similar to that of the city-owned market houses, in that space is rented to retailers of a variety of foodstuffs. One of these privately owned market houses, the Sheriff street Market, well-constructed and located only one block from the Central Market, was used at the time of this study for storage, packing, and other nonmarket uses. Another was located on the west side near Detroit Avenue and West Sixty-First Street. All the others were situated in neighborhood shopping centers on the east side along Broadway and Euclid and Superior Avenues.

Changes in population, the encroachment of other businesses, opportunities for other uses, and changes in the modes of retail shopping have resulted in the closing of all but two of these privately owned market houses. The most important one now operating is located at Woodland Avenue and East Fifty-fifth Street. This market continues to enjoy fairly good patronage because it is situated in a populous and low-income neighborhood at the junction of several lines of public transportation.

The second privately owned market house now operating is located near the corner of Euclid Avenue and East One Hundred and Fifth Street. Only a small part of the original building is now used for selling food at retail, and the remainder of the building is used by businesses that can afford higher rents than those retailing food. The retail dealers in this market cater to a class of trade who come to the market by automobile and from a nearby public transportation transfer point.