Rick's Steaks Leaving RTM?

[Holly Moore]

...

Philadelphia isn't Barcelona any more than Barcelona is Philadelphia. And having regular hours is not a mall thing: it's a business thing. Malls haven't trained us to expect predictable hours; customers demanded it long before the modern mall existed.

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Actually enforced regular hours are mostly a modern mall thing. Retail businesses, outside of a mall environment, typically set their own hours and days of operation based on sales potential, profitability, return on investment and the amount of time the owner of a small retail business wants to spend with family and such.

[rlibkind]

...Philadelphia isn't Barcelona any more than Barcelona is Philadelphia. And having regular hours is not a mall thing: it's a business thing. Malls haven't trained us to expect predictable hours; customers demanded it long before the modern mall existed.

←

Actually enforced regular hours are mostly a modern mall thing. Retail businesses, outside of a mall environment, typically set their own hours and days of operation based on sales potential, profitability, return on investment and the amount of time the owner of a small retail business wants to spend with family and such.

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Of course retailers outside of a mall location typically set their own hours. There's no one, other than the store owner or manager, to enforce uniform hours.

But uniform hours are not just a "modern mall thing". Merchants in many downtowns, by common consent (and peer pressure), stay open late one night a week. That's been going on at least since World War II, probably longer. My wife's family moved frequently to different small towns in Wisconsin, and the first thing her mother asked upon arriving in town was: "What night are the stores open?" That happens in towns large and small, wherever downtown retailers want to remain viable. Even in Philadelphia. In Center City it's Wednesday night when many retailers stay open.

[Alcibiades]

Perhaps the next Ken Burns documetary should be on the Reading Terminal Market.

[Alcibiades]

Or the next UFC battle royal.

Edited September 5, 2007 by Alcibiades (log)

[MarketStEl]

Perhaps the next Ken Burns documetary should be on the Reading Terminal Market.

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Could you imagine 16 hours on fruits, vegetables, pork products, poultry, and scrapple, with one of those 16 devoted just to the Amish? All set to an original score by Wynton Marsalis adapted from old Shaker religious music?

I dunno. I think I'd rather watch a Stephen Colbert expose of the place.

[Holly Moore]

Another month of legal maneuverings and Rick's Steaks is still going strong despite the Reading Terminal Market Board's attempted eviction of Rick's Steaks, a good tenant for 25 years, at the end of its lease for no other reason than because they could.

Still no answer to how much of the Reading Terminal Market's funds the board is squandering on high powered and very expensive Attorney Sprague's legal fees for a simple landlord tenant dispute.

All it takes to end this is for the Board to get over its bruised egos and give Rick's Steaks a new lease - the same lease they are offering everyone else. Either Rick's signs or he doesn't. Either way it's over and no more of the market's funds will be wasted on a needless legal fiasco.

[monavano]

Thanks for the update, Holly. I've been wondering if Rick was still open. Do you think there are some fierce battle going on behind the scenes? It's been 2 months with no resolution in sight.

I still hope he stays. He deserves to.

[Bluehensfan]

Another month of legal maneuverings and Rick's Steaks is still going strong despite the Reading Terminal Market Board's attempted eviction of Rick's Steaks, a good tenant for 25 years, at the end of its lease for no other reason than because they could.

Still no answer to how much of the Reading Terminal Market's funds the board is squandering on high powered and very expensive Attorney Sprague's legal fees for a simple landlord tenant dispute.

All it takes to end this is for the Board to get over its bruised egos and give Rick's Steaks a new lease - the same lease they are offering everyone else.  Either Rick's signs or he doesn't.  Either way it's over and no more of the market's funds will be wasted on a needless legal fiasco.

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There's an article in the inquirer about this today (presumably you saw it...) http://www.philly.com/inquirer/local/20071...ing_Market.html

[Holly Moore]

I didn't. Thanks.

Good for the Inquirer.

[Bluehensfan]

I think they decided to duke it out at the market this week. It doesn't really look like Rick, but I forget what that Feeley guy looks like so who knows. Wonder who won? Scorll down the page for photos

[Holly Moore]

Today's Inquirer reports that Rick's Steaks v. RTM Board is scheduled for June 2, 2008. Rick's Steaks is there til at least then.

Two other possibilities.

1. The existing Board could get over itself and end this by simply offering Rick's Steaks a lease to sign or turn down. Is the market really well served by the board pettily letting this fiasco drag on for another eight months?

2. The new mayor could appoint a new board that respects the tradition of the market by treating long term merchants fairly and that realizes there are better ways to spend the market's funds than squandering them on high-priced lawyers and an easily resolved landlord tenant dispute.

[Bluehensfan]

Today's Inquirer reports that Rick's Steaks v. RTM Board is scheduled for June 2, 2008.  Rick's Steaks is there til at least then.

Two other possibilities. 

1.  The existing Board could get over itself and end this by simply offering Rick's Steaks a lease to sign or turn down.  Is the market really well served by the board pettily letting this fiasco drag on for another eight months?

2.  The new mayor could appoint a new board that respects the tradition of the market by treating long term merchants fairly and that realizes there are better ways to spend the market's funds than squandering them on high-priced lawyers and an easily resolved landlord tenant dispute.

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Over seven months of presumably pricey lawyer retention fees would seem to me a high price to pay to evict a merchant, and I really wonder if the money could be better spent on other market improvements to better the market in other ways.

I do notice that there do not seem to be people lined up at the door to fill larger vacant stalls at the market (sans the mini stalls at the former Amy's) and wonder if all this publicity is making potential renters from shying away...

Not to seem like the village idiot (granted it could be because I reside out of state), but where's all this money coming from anyway?

[Mottmott]

Today's Inquirer reports that Rick's Steaks v. RTM Board is scheduled for June 2, 2008.  Rick's Steaks is there til at least then.

Two other possibilities. 

1.  The existing Board could get over itself and end this by simply offering Rick's Steaks a lease to sign or turn down.  Is the market really well served by the board pettily letting this fiasco drag on for another eight months?

2.  The new mayor could appoint a new board that respects the tradition of the market by treating long term merchants fairly and that realizes there are better ways to spend the market's funds than squandering them on high-priced lawyers and an easily resolved landlord tenant dispute.

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Over seven months of presumably pricey lawyer retention fees would seem to me a high price to pay to evict a merchant, and I really wonder if the money could be better spent on other market improvements to better the market in other ways.

I do notice that there do not seem to be people lined up at the door to fill larger vacant stalls at the market (sans the mini stalls at the former Amy's) and wonder if all this publicity is making potential renters from shying away...

Not to seem like the village idiot (granted it could be because I reside out of state), but where's all this money coming from anyway?

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Good question. Here's another question:

I assume no know knows exactly how much this has cost and will yet cost RTM. But perhaps someone (any lawyers out there?) can estimate the likely cost range for this legal fandango.

I have no idea whether potential vendors are steering clear of the market, but I know, irrational as it may be, I seldom shop there anymore.

[Holly Moore]

The Reading Terminal Market Corporation is a 501C3 not-for-profit organization created by Philadelphia City Council in 1994 for the sole purpose of managing the Reading Terminal Market.

And from the Mission Statement

To achieve this, while preserving the financial viability and achieving self-sufficiency for the Market.

So what is the obligation of a 501C3 not-for-profit corporation to detail its expenditures? Are the Board Meetings public? Is there an annual open meeting? Does anyone on City Council care about the Market Board wasting major funds that could be so much better spent in pursuit of the Market's Mission?

Edited October 13, 2007 by Holly Moore (log)

[MarketStEl]

So what is the obligation of a 501C3 not-for-profit corporation to detail its expenditures?  Are the Board Meetings public?  Is there an annual open meeting?  Does anyone on City Council care about the Market Board wasting major funds that could be so much better spent in pursuit of the Market's Mission?

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I do know that the IRS Form 990s that 501©(3) non-profit organizations must file as a condition of their tax exemption are publicly accessible. A friend of mine who works for one such nonprofit showed me a database of Form 990s, including the one filed by the 501©(3) nonprofit cultural organization on whose board I now serve as Vice President of Marketing (I'm pretty sure I don't need to spell out which one). The Form 990 contains data on income and expenditures, though I don't think it goes into fine detail on the latter score; IIRC, it does include info on the salaries of the five highest paid staff members and some other broad expense categories.

There should be some way for an interested party to obtain the Reading Terminal Market Corporation's 990s if he or she so desired. Whether or not they will make for engrossing reading is another question entirely.

[serpentine]

There should be some way for an interested party to obtain the Reading Terminal Market Corporation's 990s if he or she so desired. Whether or not they will make for engrossing reading is another question entirely.

Hmm, some way indeed. Like Googling "990"? 990 finder here. However, it'll be a couple years before you'll find out the details of this particular fiscal year. (I'm impressed that even 2006's statement is available, honestly.)

[Bluehensfan]

There should be some way for an interested party to obtain the Reading Terminal Market Corporation's 990s if he or she so desired. Whether or not they will make for engrossing reading is another question entirely.

Hmm, some way indeed. Like Googling "990"? 990 finder here. However, it'll be a couple years before you'll find out the details of this particular fiscal year. (I'm impressed that even 2006's statement is available, honestly.)

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I'm no lawyer but you figure that Sprague's representation of the market is not pro-bono, so he's probably billing in excess of at least a few hundred dollars an hour. To be honest with you, I have no clue how many hours this case is taking up, but assuming that he will bill for at least 200 hours of work, that's over 60K right there. And that's probably an understated bill.

Rick must be the Prince of pains in the rear to the market for them to be spending that kind of money on getting him out. Seems to me that the money could be spent in better ways, but who am I to talk, having just blown over $200. on those bone cookies they have at Termini's...

[Mummer]

I'm still confused about the "damage" that has come Rick's way.

His lease was expiring, so why didn't he get a new one? If I needed a new deal, I'd have busted my fanny.

How does anybody have an idea of management's legal expenses? Perhaps Sprague attached his name for publicity. Keeps that 80 year-old blood flowing. Your spec only enhances.

I'm supportive of the longevity/loyalty issue, but I'm disgusted by the public "martyrdom" of the tenant, having never heard that his request for a renewal lease was declined. What did he propse to his landlord as new terms? He is the tenant, isn't he? Has management abused him?

My sympathy is for unfortunates. Some guy collecting $7-10+ cash from several hundred customers daily needn't apply.

[Rich Pawlak]

I for one will be glad to not have to read or hear anything about this until June. Of course, there will probably still be debate here---why, I will never know. Talk about beating a dead horse. There is simply nothing new to say now.

[Holly Moore]

Charlie,

As I have said before, this is not about Rick's Steaks or Rick Olivieri. It is about the Reading Terminal Market Board of Directors high-handedly kicking out a long term merchant (any long term merchant) of twenty-five years who has run a good operation, has remained current on rent and who has been a good tenant by obeying the lease and running a solid operation.

Even assuming the legalities are all in the board's favor, and that is not entirely clear, the board's actions go against market tradition and threaten every other merchant of good standing. Most leases of longterm, good tenants are renewed unless the owner is taking over the space for other purposes. That is just good, smart business. When that doesn't happen, and especially when the board's reasoning for its actions keeps evolving, it is only natural to suspect the Board's true motivation.

As to legal expenses, let the Board and Management answer that question. How much are they spending on attorney and related fees for this landlord-tenant dispute. It is a fair question to ask a Board charged with the fiduciary responsibility of judiciously spending funds. Two simple questions actually. How much and why? OK, a third question, what could the funds be used for if not going to Lawyer Sprague and associates?

Rich, you're in the media and surely understand news cycles. If one believes an issue to be important, that horse needs an occasional flailing lest the dear nag be buried and forgotten. I'm still hoping that political and public pressure will build to the point that the parties resolve this before June 2008.

Edited October 16, 2007 by Holly Moore (log)

[udalum]

For the 990s, you can go on guidestar.org. You have to register, but it is painless. You can get more financial data if you are a premium member.

[MarketStEl]

For the 990s, you can go on guidestar.org.  You have to register, but it is painless.  You can get more financial data if you are a premium member.

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No need to register to use the Foundation Center's 990 database, linked from serpentine's post above. Most recent data appears to be for fiscal year 2006.

[rlibkind]

Depositions currently being taken. Discovery ends March 1. If there's going to be a settlement (and I'm not predicting whether or not there will be), the incentive will increase to have one as trial date nears.

[cwdonald]

Depositions currently being taken. Discovery ends March 1. If there's going to be a settlement (and I'm not predicting whether or not there will be), the incentive will increase to have one as trial date nears.

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Does anyone know if the new Mayor can change the RTM board, ie do they serve at the discretion of the Mayor? If so, do we know where Nutter stands on this issue? Could that resolve things?

[rlibkind]

Some may have observed that in a post on the Reading Terminal Market / What I found on my most recent visit thread, I reported that the market's most recent e-mail newsletter included coupons from a number of merchants, including Rick's Steaks.

Given the current litigation, that poses an obvious question: Is the inclusion of Rick's in the promotion indicative of any changes in the situation?

The quick answer is "no". According to RTMGM Steinke, as long as no decision has been reached by the courts and Rick's remains in the market, he's being treated the same as other merchants with respect to promotional opportunities, day-to-day operations, etc.