Philadelphia wholesalers invest in new market
Philadelphia wholesalers invest in new market
The talk is over. On Sept. 15, 71 stockholders of the Philadelphia Fresh Food Terminal Corp. put down $15,000 per unit to hold their place in a new wholesale produce market.
Sonny DiCrecchio, executive director of the Philadelphia Regional Produce Market, said that the $1,080,000 that had been collected "was the final thing to bring to the state" authorities before the construction project could begin. "This is really good news. Until now, people were saying they were in." Now contracts are signed and the money is committed. Mr. DiCrecchio said that 71 of 72 stockholders in the current market had placed money down on the new market. He would not say "who is not making the trip."
There are 72 units in the new market, and Mr. DiCrecchio said that it was odd how the commitments worked out almost perfectly. He said that some companies who were expected to take one unit took two, but some who were believed to want three took two. So, with some luck, the market is very well aligned.
The $1 million raised on Sept. 15 will go toward expenses already put into planning the market and will additionally cover some other administrative costs to come. This will not go toward construction costs, which will be about $250 million.
Mr. DiCrecchio told The Produce News Sept. 19 that the Philadelphia seafood market, which parallels the existing produce market, may not be participating with the produce businesses in the move to new real estate within Philadelphia's Navy Yard, which is developing as a large industrial park. He said that the existing seafood market has two big fish companies and three small ones, as well as one major processor that is an important cog within the market.
That processor is trying to buy land across the street from the existing produce market. If that takes place, the other seafood companies will not want to be located away from the processor for competitive reasons, so the seafood interest in the move is rapidly waning.
While this may be bad news for the future of Philadelphia's seafood business, "it is good for us financially," Mr. DiCrecchio said. All of the money provided by the state for the new market will no longer need to be shared with seafood interests, but rather can entirely go into building a fresh produce market. The status of the seafood market will be finalized on Sept. 22.
As produce market expenses rose, "I had wishful thinking we would get more money. In the back of my mind, this is where the money would come from."
The Philadelphia produce market will be meeting with construction and design teams on Sept. 22, and then a ground breaking in the Navy Yard in mid-October and the demolition of abandoned homes there will kick off the project. "In the first couple weeks of November, we'll bring in 350,000 cubic yards of soil for the site. In February we will start driving piles, so we'll be on schedule for an opening in two years." That would be September 2008.
Receiving the financial commitment from Philadelphia's wholesalers "was great news. It engages them now" emotionally as well as financially, Mr. DiCrecchio said. On a personal note, he added, "I can't wait to see it open."
Sonny DiCrecchio, executive director of the Philadelphia Regional Produce Market, said that the $1,080,000 that had been collected "was the final thing to bring to the state" authorities before the construction project could begin. "This is really good news. Until now, people were saying they were in." Now contracts are signed and the money is committed. Mr. DiCrecchio said that 71 of 72 stockholders in the current market had placed money down on the new market. He would not say "who is not making the trip."
There are 72 units in the new market, and Mr. DiCrecchio said that it was odd how the commitments worked out almost perfectly. He said that some companies who were expected to take one unit took two, but some who were believed to want three took two. So, with some luck, the market is very well aligned.
The $1 million raised on Sept. 15 will go toward expenses already put into planning the market and will additionally cover some other administrative costs to come. This will not go toward construction costs, which will be about $250 million.
Mr. DiCrecchio told The Produce News Sept. 19 that the Philadelphia seafood market, which parallels the existing produce market, may not be participating with the produce businesses in the move to new real estate within Philadelphia's Navy Yard, which is developing as a large industrial park. He said that the existing seafood market has two big fish companies and three small ones, as well as one major processor that is an important cog within the market.
That processor is trying to buy land across the street from the existing produce market. If that takes place, the other seafood companies will not want to be located away from the processor for competitive reasons, so the seafood interest in the move is rapidly waning.
While this may be bad news for the future of Philadelphia's seafood business, "it is good for us financially," Mr. DiCrecchio said. All of the money provided by the state for the new market will no longer need to be shared with seafood interests, but rather can entirely go into building a fresh produce market. The status of the seafood market will be finalized on Sept. 22.
As produce market expenses rose, "I had wishful thinking we would get more money. In the back of my mind, this is where the money would come from."
The Philadelphia produce market will be meeting with construction and design teams on Sept. 22, and then a ground breaking in the Navy Yard in mid-October and the demolition of abandoned homes there will kick off the project. "In the first couple weeks of November, we'll bring in 350,000 cubic yards of soil for the site. In February we will start driving piles, so we'll be on schedule for an opening in two years." That would be September 2008.
Receiving the financial commitment from Philadelphia's wholesalers "was great news. It engages them now" emotionally as well as financially, Mr. DiCrecchio said. On a personal note, he added, "I can't wait to see it open."
