What is going on with the Kirkgate Market?

Traders angry at £1.5m market profit

Yorkshire Evening Post, 11th of January 2008

Peter Lazenby

LEEDS City Council is making £1.5m a year profit out of the city's Kirkgate market – while traders warn of financial problems and stalls stand empty.
Traders say rent, rates and increasing energy bills are pushing more and more to the brink.

The YEP used the Freedom of Information Act to obtain figures that show the indoor market costs the council £3,064,000 to run, and it generates income of £4,228,000.

The outdoor market costs £357,000 and brings in £750,000. The total profit is £1,517,000.

On top of rent and service charges, traders also pay business rates, not included in the profits.

Leeds City Council said that over the last 15 years it has invested £12m in the market and that the number of vacant stalls and shops had fallen.

Traders reacted angrily to news of the levels of profit.

Colin Coultas of Tony Banks grocery in the indoor market said: "All I know is that if they charged a different rent they could fill the units. I can remember when there were no empty units.

"The last big rent increase was about 90 per cent. It used to be one of the best markets in Britain – probably the best."

Michael Gaynor of Malcolm Michael butchers said: "The rent and service charges are about £320 a week and the business rates are about £95 so that's £415 a week. They are screwing us."

A cafe off butcher row which had once been a thriving business closed overnight recently, costing four jobs.

In some sections four properties in a row are empty and to let. Leeds Pottery is to close shortly.

One trader who did not want to be named said: "If they lowered the rents the people of Leeds would get a better bargain. It is £1,000 a month and it is too much."

Other traders said they dare not talk to the YEP because of fear of reprisals. Mr Gaynor said he had been summoned to a meeting with market management after speaking to the YEP some weeks ago.

One trader sang the praises of the council and market management. "They do a fantastic job," said Wazim Mir who has two clothing stalls in the indoor market.

But young butcher John Smith said: "I have worked for three butchers here and two of them have closed."

Leo Burke, who has been on butcher row for 20 years, said: "I pay £1,700 a month for rent, rates and service charge. It is astronomical."

A council spokesman said: "We will continue to invest heavily to keep the market healthy and vibrant.

"Profits go into a central pot to help the council provide a range of services and keep council taxes low. However, it would be inaccurate to say this shows a lack of commitment to the market.

"Before Christmas, the number of vacant stalls decreased with fewer than 10 per cent unoccupied – a similar figure to previous years.

The last protest...

Dozens gathered on Saturday the 12th of January to protest for the closure of most shops in the Corn Exchange.
Zurich, the insurance company that manages the building, have dismissed the protests and pleas of over 15,000 for the building to remain an independent traders venue. No public explanation by Zurich has been given despite the numerous letters sent by the public, MPs and even Prince Charles! The negotiations between the Leader of Leeds City Council Andrew Carter and Zurich did not lead to any compromise by the insurance company and the Council is constrained by the 100 year long lease.
The sad conclusion is that on the 14th OF JANUARY most traders will leave the building and only only seven shops will be left, who have already started to look for alternative places as business at the Corn Exchnage is expected to go down.

Fair Exchange? Big Issue 7-13 January 2008

Is Kirkgate Market next?

Independent traders at the Corn Exchange in Leeds are being kicked out by the managers of the building Zurich. And what is the solution proposed by Leeds City Council, owners of the building? That they will find them a place in the next door Kirkgate Market...

Corn Exchange traders have already suggested that this is a very unlikely idea as both clienteles are very different and the Corn Exchange caters for higher income groups. Unless, of course, the Council has their own plans for the Kirkgate Market
The Council has indeed plans to redevelop the Kirkgate Market and although in all the public communications so far the Council has maintained that the regeneration will keep it as it is, this new revelation points to the worst: that they envision a beautification of the Market, capitalising on next door future development of Eastgate and Harewood Quarter. This will be an upmarket shopping centre, understood by many to be an extension of the Victoria Quarter. More flambouyantly, Stuart Robinson, consultant at this shopping centre project said that the galleria is designed to be “on a par with Milan’s Vittorio Emanuele.” This is classified as one of the most expensive and exclusive places in Europe but it also has fantastic 1870s architecture, something that Terry Farrell’s design will never be able to reproduce.

You somehow can't escape the thought of how will the shoppers of such an exclusive shopping centre feel next to the butcher's row in the next door Kirkgate Market.

Traders are the Market are already aware of all these ongoing plans and fear the worst.

MORE THAN 16,000 PEOPLE AGAINST PLANS TO TURN THE LEEDS CORN EXCHANGE INTO A FOOD COURT

Protestors outside the Corn Exchange in Leeds on the 15th of December 2007

OVER 16,000 PEOPLE HAVE GONE OUT OF THEIR WAY TO SAY THAT THEY DO NOT WANT THIS SCHEME AND THAT THEY WANT ZURICH TO CHANGE THEIR MINDS –

• The Facebook Save the Corn Exchange global and local campaigns with supporters both within Leeds and worldwide. To date 11,606 people have joined this campaign.
• The local handsigned petition which has over 3450 signatures.
• An online petition with over 700 signatures
• A letter from academics at the University of Leeds stating that they feel the plan is damaging to the City of Leeds.
• The support of the two Myspace Save the Corn Exchange Campaigns and the Bebo save the Corn Exchange campaign totalling some 400 young people.
• Leeds City Council Officials have said they are very concerned about the plans.
• The Yorkshire Evening Post “Your Views” section has received dozens of letters from members of the public who are furious about the plans – these are available to view online.
• Secretary for the Environment Hilary Benn has given his support to the traders and has written to Zurich on their behalf.
  

WHAT WILL IT TAKE FOR THEM TO LISTEN?

Leeds, Live it, Lease it

Corn Exchange’s future in the hands of a high risk pension fund

The Corn exchange is owned by Leeds City Council but is leased to Zurich Assurance. Effectively Leeds Corn Exchange now forms part of a property portfolio of one of Zurich’s pension funds. The fund is managed by Threadneedle Asset Management and according to Zurich’s own documents this fund “invests in assets which tend to produce the highest level of return but with higher risk”.

This fund has indeed shown a sharp fall in the last year. The sustainability of the building therefore depends on property market fluctuations. This profit-oriented view was confirmed by Zurich in an email communication:

As around £1.5 million pounds has been spent on the repair we must make sure
that the future of the building is sustainable. […] we own the building on
behalf of our policyholders - people who have invested with us and to whom we
are accountable to for their long term savings. As such, we need to ensure we
act responsibly in securing their futures, as well as the future of the building
itself” (email communication)

In sum, this listed building and historical heritage of Leeds now forms part of Zurich’s pension’s property investment portfolio whose aim is to make profit.

SAVE THE CORN EXCHANGE IN LEEDS

The Corn Exchange in Leeds is one of the most famous independent and alternative shopping outlets in the UK now under threat to become a Food International Emporium. Although owned by Leeds City Council it is leased to Zurich whose aim is to maximise profit and therefore get more upmarket shops who will pay higher rents.

Thousands of people in Leeds have shown disgust for this change. We feel it will mean the end of one of the few alternative public spaces in Leeds, a city increasingly taken over by corporate brands.