Donna Bednar answers questions about Loveland Farmers’ Market

by Donna Bednar,

Dear Loveland Magazine Readers,

Recently, Mrs. Pam Gross, Loveland City Council member has used social media and print media to ask questions regarding the Loveland Farmers’ Market operating procedures. (Councilwoman Pam Gross has questions for Loveland Farmers’ Market)

At no time, did she ever attempt to contact the market directly to satisfy her curiosity. Here are her questions and my answers.

Mrs. Gross:  Who is the owner of the market? What is the tax structure of the market?

DB:  Donna Bednar would be considered the owner of the market. The market is classified as a 501©4. 

Mrs. Gross:  Who is responsible for the rules and regulations of the market? 

DB:  The majority of the rules and regulations were drafted from other area markets as a standard of the industry.

Mrs. Gross: How are the sales tracked? By whom?

DB:  The market does not sell any items. Sales slips are collected at the end of each market day from each vendor. These sales are estimated and anonymous and are used strictly to monitor the activity of the market in order to make sound marketing and advertising decisions.

Mrs. Gross:  What is the cost for vendors to participate? Who receives this money?

DB:  $200 per season. The fee is paid to Loveland Farmers’ Market.

Mrs. Gross:  How many vendors participate? How many are from the community?

DB:  In 2015, each market day at the bowling alley varied regarding the number of vendors. The range was from 14 – 37. In 2014, at Jackson Street Market, there were 16 – 42 vendors present. Vendors are within a hundred mile radius and include Ohio, Kentucky, and Indiana.

Mrs. Gross:  Do all vendors have an OH sales tax license? Is sales tax collected and remitted on items that are not food?

DB: These questions are between the vendors and the State of Ohio.

Mrs. Gross:  Have all vendors and the owner of the market filed an income tax return for the City of Loveland? Who is responsible for ensuring this is done?

DB:  The Loveland Farmers’ Market has no taxable income. The required Form 990-N is filed each year with the IRS.  With regard to vendors filing, that is between the city and the vendors.

Mrs. Gross:  Are the rules for selling “cottage food” followed? Are the rules for “perishable food” followed?

DB:  Rules regarding cottage food and perishable food are set in place by the Ohio Dept. of Agriculture and the Hamilton County Board of Health. Both agencies do periodic inspections to insure food safety and permits are in compliance.

Mrs. Gross:  Does the owner of the market carry an insurance policy? Do the vendors have an insurance policy?

DB:  The market carries one million dollar general liability insurance policy as required by the city and the fire fighters association. The vendors are required to carry a one million general liability policy.

Mrs. Gross:  What are the liability issues for the City if someone is hurt or falls ill from something purchased at the market?

DB:  This is best answered by your (the City) legal counsel and/or your (the City) insurance provider. I’m sure it’s no different than if there is an incident at Kroger’s or Bond Furniture.

Mrs. Gross:  Are you aware that the City Of Loveland in 2015 paid in excess of $1,600 for expenses directly related to the operation of the market? Is this fair to other Loveland based businesses?

DB:  And, the market incurred $1,300 in additional expenses as a result of the forced move. The city, gives concessions to businesses frequently in order to help the business get established and/or to entice locating in Loveland.

Mrs. Gross:  Are you aware that the City of Loveland in 2011, 2012, 2013 leased property to the market for $1. Again, is this fair to other Loveland based businesses? Are you aware a special exception was given to the market that allows for one permit instead of individual permits required for all other vendors conducting business in Loveland? Is this fair to other businesses?

DB: These items are either in ordinances or agreements which were made between the city and the market.

Research was completed by Mrs. Cheshire (Clerk of Council) in 2014 regarding charging the farmers’ market vendors an individual license fee. In an email response from Mrs. Cheshire to Mrs. Settell and Mrs Gross on February 11, 2015, Mrs. Cheshire reported that Montgomery, Madeira, Wyoming, Lebanon, Milford, Blue Ash, Deerfield Twp. and Anderson Twp. do not charge fees nor require permits of vendors at their farmers’ markets.