Sustaining downtown progress

January 19, 2009
By Karen Gentry
MiBiz

LAKESHORE — Downtown organizations along the Lake Michigan coast are maintaining funding levels and expect no real changes in 2009 despite the downturn in the economy.

Muskegon is hoping to sustainably grow more retail and other commercial business. Grand Haven looks ahead to water and sewer projects and new streetscapes. Holland, meanwhile, looks to the completion of its 7th Street parking deck.

In Muskegon, downtown promotional efforts are handled by Muskegon Main Street, a separate non-profit organization formed in 2002. Main Street Manager Dan Rinsema-Sybenga said funding for Main Street is not based on the ability to capture increments. Tax increment financing for the Muskegon Downtown Development Authority is still going to pay off bonds from the now defunct Muskegon Mall. Main Street receives funds from the Community Foundation for Muskegon County, Muskegon Area Chamber of Commerce and the city of Muskegon, as well as business members.

"This year, all of our revenue is raised or committed," Rinsema-Sybenga told MiBiz, noting the start of the fiscal year on Oct. 1 is more cause for concern.

A two-mil tax in Grand Haven generates about $56,000 per year for the Main Street Downtown Development Authority, according to Grand Haven Main Street DDA Executive Director Dana Kollewehr. About 75 businesses are part of the DDA. Kollewehr said another $250,000 is raised through tax increment financing for infrastructure and other improvements. Kollewehr said DDA funding has held its own, but stayed flat.

A 2-mil levy in Holland generates about $175,000 for downtown, according to Holland Downtown Development Authority Director Patty Fitzpatrick. Holland’s DDA boundaries include 300 businesses, although the core downtown district is smaller.

Muskegon development

Development continues in downtown Muskegon. Earthly Needs, a new bakery on Terrace Street, opened around Thanksgiving, and the Muskegon Athletic Club — an upscale sports bar — opened last fall on the former mall site. In early January, Rinsema-Sybenga toured Baker College’s culinary school, which will open in September 2009. The building’s exterior is complete with the interior to be completed this winter, Rinsema-Sybenga said.

"That’s a huge project for downtown. It will be a big boost for downtown," he said, noting the culinary school will draw 300-400 students downtown every day.

Rinsema-Sybenga said there are still four, first-floor retail commercial spaces available in the Sidock and Hines buildings downtown.

The Russell Block Market is slated to open in June this year in the former Daniel’s building. Developer Gary Post is billing the development as an indoor strolling market. Rinsema-Sybenga describes it as similar to Seattle’s Pike Place Market, minus all the fruits and vegetables. About 25 vendors, mostly small retailers selling arts and apparel, a coffee shop, and meat shop have signed on. Some of the vendors are looking to Russell Block Market for a second location while others want incubator-type space for startup businesses. Russell Block Market will include two floors with room for up to 45 businesses.

Rinsema-Sybenga would like to see the farmers’ market on Yuba Street move to a location closer to downtown, although it is a hot button issue. The market has been at the same spot for more than 20 years with some farmers not wanting to move and the city not willing to make the capital investments to move it, he said.

Grand Haven

In Grand Haven, Kollewehr said the downtown businesses that are reaching out to customers through e-mail blasts, personal phone calls or direct mail have benefited this past holiday season.

"Business owners are having to be a little bit smarter about educating their customers," Kollewehr said.

With the current economy, businesses have to work hard at keeping their name and image in the public eye. The Grand Haven Main Street DDA is offering more workshops on topics such as customer service, sales and marketing. Kollewehr said a workshop on Web site design will take place in March in conjunction with the Grand Haven Chamber of Commerce and the Michigan Small Business & Technology Development Center.

Businesses offering food products and specialty foods have done well.

Although most of Grand Haven’s downtown businesses have been around for a long time, Tuck’s, a Christmas store, opened recently, as well as Chocolate Cove, a fudge and candy store.

An engineering firm has been hired to look at water and sewer infrastructure in need of repair and upgrading.

"They are putting together a plan for us that includes some streetscape elements to make the district look better," Kollewehr said.

District boundaries include three blocks of Washington Avenue from Harbor Drive to Third Street.

Holland

Fitzpatrick said Holland businesses also held their own over the holidays. Ground-floor vacancy rates are about 3-5 percent, which is considered good. Blackbird, a rustic home furnishings store, opened in the fall, as did a cell phone store.

The 256-space parking deck on 7th Street is the biggest project right now. It’s being built to handle the development on the east end of downtown. Some street spaces will be made permanent, the street repaved and some bump-outs redone.

The past few years, River Avenue was redone and the Eighth Street Market Place was completed. The DDA manages 14 public parking lots downtown, maintains the public restrooms and all the public amenities and landscaping.

This article appeared in the Monday, January 19, 2009 issue of MiBiz, read by upper management executives in West and Southwest Michigan. Print subscriptions are free to qualified individuals who are employed in West and Southwest Michigan. For further information about MiBiz, visit www.mibiz.com.