Example of Ensuring Tenant Mix Diversity for Community Benefit:
Pike Place Market Public Development Authority (PPMPDA) in Seattle, Washington
A charter purpose of PPMPDA is to “promote the survival of small shops, marginal businesses, thrift shops, arts and crafts and other enterprises, activities and services which are essential to the functioning of the market.” Governing documents state “the Market shall be a venue for incubating small business, while at the same [time] be an economically viable marketplace.”
PPMPDA officials incubate and work closely with tenants to ensure “business success and the success of the market as a whole.” Notably, PPMPDA gives priority to businesses contributing to the overall vitality of the Market, stating specifically that those businesses not expanding their sales volume or reinvesting in their business “should not be allowed to continue to do business in the market.” The PDA also allows time for businesses to develop: “after the initial lease term, or 2-3 years, the tenant should expect to have development a customer base large enough to support the target rent for the location and to contribute to the Market as a whole.”
PPMPDA must continually work to ensure the proper “mix” of tenants that maximizes the vitality of the Market. An additional challenge lies in incubating marginal businesses through provision of business support services.