With the national and international economies in a tailspin, merchants in the traditionally economically strong Ocean Beach business district along Newport Avenue are vying for every last consumer dollar available during a farmers market held each Wednesday. Local brick-and-mortar merchants are finding themselves competing against farmers market vendors’ low-cost products, sometimes creating a cold business climate during an already economically frigid winter in Ocean Beach. As local retail shops work to improve their own businesses along Newport Avenue, a handful of local merchant stores have shed light on the economic impact of much-loved special events such as the Wednesday farmers market and other events, including the annual street fairs and December craft fairs that take over Veteran’s Plaza Park at the foot of Newport Avenue. The events hosted by the Ocean Beach Merchants Association (OBMA) and Ocean Beach Town Council (OBTC) draw thousands to Ocean Beach every year and have become part of the culture of the inclusive beach community. The local business and residential communities appear to generally support and enjoy the fairs and farmers market. City officials have asked the OBMA and the OBTC to work with the community to address any negative impacts the farmers market may have on the surrounding community, said Carolyn Wormser, director of special events for the city. “It’s a balance between benefits and impacts,” Wormser said. “[Special] events are structured typically in a manner with the goal of providing more benefit to most entities than they impact.” But benefits and impacts vary for a diverse business community like Ocean Beach. A Wednesday walk along Newport Avenue reveals many of the restaurants and bars flush with customers. It’s at these times a retail shop alongside the farmers market might see relatively dismal sales. Market forces magnify the impact, however, when a proliferation of farmers market vendors competitively prices merchandise without having the added cost of maintaining a brick-and-mortar storefront and employee payroll. The lack of parking also affects local business on farmers market days, said longtime Ocean Beach business owner Steven Mallory. Mallory owns and operates Mallory’s Furniture, 4916 Newport Ave. He confirms what several other business owners and managers along Newport Avenue have said. “Anytime you lose the street it hurts business,” Mallory said. “But overall, the [farmers market] has had a positive effect.” As the market has grown over its 17-year lifespan, so has the number of produce and merchant tables. The market has grown to include more than 100 booths, depending on the time of year. This includes tables like the one maintained by Julia Brozo. Brozo makes jewelry from hemp, beads and stones. The farmers market gives solo artists like her an opportunity to display handcrafted jewelry to hundreds of people in “just one day.” But while vendors like Brozo maintain that they “need to eat too,” one day of small profits for individual vendors translates into thousands for the OBMA throughout the year. Over the last three years, the farmers market has made an average of about $80,000 a year from the market, according to public records. “Certified” market produce sellers pay about 7 percent of sales to the OBMA. “Non-certified” vendors — including food retailers and other merchandisers — dish out 10 percent to the OBMA. Small crafts vendors like Brozo pay a flat $35 fee, according to Denny Knox, OBMA executive director. The OBMA pays about $150 for a special-event permit, according to city officials. Proceeds from the farmers market pays for OBMA’s administrative costs like payroll and other “general” expenses. Management and general expenses totaled about $77,000 for the last fiscal year, according to state tax record. Proceeds also help pay for virtually everything connected to the organization, said Knox. The OBMA also pay for advertising in several publications, including advertising space in the Peninsula Beacon. Proceeds from the market go toward other fundraisers like the annual Ocean Beach Chili Cook-Off and Street Fair. Profits from the chili cook-off help pay for the community’s annual July 4 fireworks celebration, Knox said. “There isn’t a project we do that doesn’t get some of that funding,” she said. “It’s the economic engine for everything we do.” But as part of the city’s permitting process, the OBMA needs to address and resolve problems a local business owner has with special events, such as the farmers market and about five craft fairs throughout the year, according to city officials. While it seems nothing can be done about the dearth of Wednesday parking space without canceling the market, at least one local merchant along Newport Avenue, who asked not to be identified, said the OBMA should cap the number of merchant tables that are directly competing with local brick-and-mortar businesses. To address concerns about the volume of farmers market vendors, the OBMA established a vendors committee of about five to seven committee members, who screen types of vendors allowed into the farmers market. While initial committee meetings formalized the vendor-selection process, clearly delineated criteria for qualifying vendors has yet to materialize, Knox said. “We’re trying to make the rules … We’re looking at some way to have a better mix of vendors and merchants,” Knox said. Questions over the farmers market raised the ire of some community activists, fueling rumors that some want the market to go away. However, no one interviewed by the Peninsula Beacon said they want the market to go away. In fact, every business and community member along Newport Avenue sings the praises of the Ocean Beach Farmers Market. Mallory, who has been part of the Ocean Beach business community since 1980, said the farmers market has helped overhaul the community’s image over the last couple of decades. “If the farmers market went away, the Ocean Beach Merchants Association and Ocean Beach as we know it would cease to exist,” Mallory said.