City leaders will take the first step today to make Downtown’s City Market a healthy lifestyle hub that draws more people and vendors without relying on public subsidies.

The city will begin seeking ideas from private bidders who could invest in and manage the financially struggling market’s east and west wings.

What will go into the wings hasn’t been decided, but the goal is to make them public venues that attract customers, particularly on evenings and weekends.

City leaders have a general idea of what they’d like to see. The east wing facility would focus on health and fitness and could include lockers, showers and bicycle storage to encourage people to bike to work. In the west wing, leaders prefer a plan that includes cultural enrichment such as visual or performing arts.

And in the main hall, which the city would continue to operate, market leaders would like more fresh-food vendors featuring Indiana-grown products.

The market, which now has mostly prepared-food stands, serves primarily as a lunchtime spot. None of the current vendors would be forced to move, but leaders say the emphasis would be on healthy options.

“You create an environment around a fresh market where you can have lunch, as opposed to a lunch place where you can buy produce,” said Wayne Schmidt, acting president of the nonprofit board that runs the city-owned building. “This ought to feel different than a food court.”

Other changes could include building upgrades and live performances.

Market depends on public subsidies to survive

The City Market has been losing money for decades. Today, it survives only with the help of public subsidies, including $294,000 so far this year. Disputes with tenants over rent payments have escalated tensions.

Mayor Greg Ballard has said for months that a new model is needed to make the market viable, and in August, the market board prepared a long-term plan, to be released today.

Among the suggestions is moving all the current vendors into the main hall, reducing the size of their booths and bringing in more tenants. That would help generate additional revenue and create a bustling ambiance similar to markets in Cleveland and Philadelphia.

“I want the aisles so crowded that you have to fight your way through,” said Jim Reilly, the market’s executive director.

Although the goal is to get more fresh-food tenants, the market will remain open to bringing in other vendors, said John Cochran, Ballard’s special counsel who is on the market board.

It’s too early to say whether chain restaurants would be part of the mix, but Cochran said making the wings a destination should pique interest among tenants, as well as visitors.

Micaela Coleman is one of the potential customers. The Franklin Township resident buys fresh produce at Whole Foods on the Far Northside because she said it’s the best option and near her job, but she’d make a stop Downtown to pick up locally grown goods.

“There are no fresh markets,” said Coleman, 29. “Fresh food would be a big draw.”

Market faces some significant challenges

Some challenges remain to bring city and market leaders’ plans to fruition.

A key step will be upgrading a utility system that drives up building costs. The market is among about 60 city buildings that will be audited before the end of the year to determine the energy efficiency; any upgrades could be funded through savings in energy costs.

But it’s unclear how much the city would have to pay upfront for other improvements, such as adding restrooms in the main hall and moving tenants.

Downsizing the current vendors’ booths also could require renegotiating leases, and some vendors might be reluctant to agree to the change. Several have been cautious since a 2007 renovation took longer than anticipated, causing some to lose business.

Mike Batarseh, of Cath Coffee&Tea House, said before making changes, the market needs to do a better job of promoting itself and current vendors.

But David Stockton, owner of Just Cookies, said he thinks a new model is needed.

“The more people that come through the doors, the better,” he said. “Even if with triple the number of people with competing products, we’d come out ahead.”

Leaders will begin meeting with vendors next week to discuss plans. Schmidt said the goal would be to keep the building open during renovations.

Some of the changes, including adding new vendors, could take place in coming weeks. Leaders hope to have a plan in place for the wings by early next year.