Most cities have an area referred to as “downtown.” You might be describing an intersection with a local convenience store, post office and the town’s only stoplight. Or it can be applied to a cross section of streets lined with cloud-blocking skyscrapers and pushy hotdog vendors. Regardless of which type of downtown it is, retail is a crucial part of it. Here is a glimpse into some diverse markets across the Midwest, each with a distinct flavor and attitude, as Heartland Real Estate Business examines the state of downtown retail.

Village of Tinley Park, Illinois

The Village of Tinley Park is fixated on Main Street. The street, which records show existed in 1838, is getting a facelift in hopes of luring in new retailers. The goal is to establish the look and atmosphere of a modern, turn of the century downtown –– incidentally, not that far off from 1838.

“Like all older communities, we have a Main Street. We concentrate on that in our retail incentive programs,” says Patrick Rea, chairman of the city’s Finance and Economic Development Committee and Intergovernmental Affairs Committee. To give the street an antique look, the village has enacted some special programs, such as a façade program.

Retailers that want their storefronts redone in a turn of the century 1900s motif can split the cost of construction with the city if the proper standards are met. “This has been imminently successful,” Rea says, “and in no small way has remade the downtown.” Local retailers that fit in the small town atmosphere, like card shops, bridal shops, ice cream parlors and boutiques, line Main Street. Also, the city’s METRA station is undergoing a $6.5 million overhaul to complement the desired look.

Second, the city is buying available properties on the street and soliciting developers to convert the buildings to the 1900s style. If the properties are turned into mixed-use properties, single-family and commercial, Cook County will tax the developer on a single-family rate, 45 percent less than the standard commercial rate.

Throughout the rest of the village, beautification projects are ongoing. In a program similar to the façade idea, businesses that are improving their landscaping can collaborate with the village and have funds matched for the work. These programs are attracting the desired retailers and having the desired effect.

“We have the kind of thing that would be at home in the older eastern towns,” Rea says, “and [retailer’s] are staying open.”

St. Louis, Missouri

Retail development in downtown St. Louis may seem a little quiet right now. Even a peek behind the curtain of the Downtown St. Louis Partnership (DTSLP) will not reveal much. There are hints of a major retail revitalization on the horizon, but people in the know do not want to talk specifics –– yet.

“We have hired a retail strategy consultant to advise us, the city and other entities on what kind of retail to go after,” says James Cloar, president and CEO of the DTSLP, a private sector, non-profit management and development corporation representing business and property owners in the downtown area. The consultant’s report, expected at the end of this month, will spell out exactly which retailers to attract, but Cloar has a few ideas already.

“I don’t want to be presumptuous about it, but we need retail that can have a multiple market,” Cloar says. The retailers need to be aimed at a combination of downtown’s three largest demographics: 97,000 downtown workers, 11,000 to 12,000 residents, and millions of sports fans and tourists each year. Second, a unique charm must be present in the retail, enticing consumers from around the region. Also, downtown retail needs to capitalize on the burgeoning residential revival in the area. For those shoppers, it’s a shorter drive downtown than to the regional malls.
When the report is finished, the DTSLP is going to add a staff member to match retailers with properties, as well as lay the groundwork for a long- term strategy of attracting bigger, national retailers. But the mechanics of how these ideas are going to be implemented will remain under wraps until the report’s presentation.

“We want to be smart about it,” Cloar says. “A lot of other cities have gone to extraordinary lengths to attract retail without discriminating what kind of retail or where it is placed.” He wants St. Louis to avoid the pitfalls of that scenario, such as unsuccessful stores and useless incentives. With the cooperation of the business community downtown, public sector, landlords and leasing agents, he expects to succeed.

Freeport, Illinois

Sometimes being left out of the crowd is a good thing, or at least it was for Freeport, Illinois. In the late 1960s and early 1970s, a wave of urban renewal swept through the Midwest. Older buildings in downtown areas were knocked down to make room for more modern facilities. Now, there is renewed interest in redeveloping aging buildings, and Freeport is ripe with them.

“At least 90 to 100 buildings around 100 years old are still standing in downtown Freeport,” says Marty Vanags, executive director of Freeport Downtown. These buildings, most of which were constructed between 1870 and 1910, are being redeveloped into retail and housing uses.

Freeport has a strong retail base, in part supported by the headquarters of Newell Rubbermaid Inc., that keeps local and independent shops open. Along with two independently owned men’s clothing stores, there is an independent eight-screen first run theater, a women’s cosmetic store and a number of restaurants that range between coffee and bagels to fine dining. With strong retail already established, Freeport hopes to bring in more residents, which, in turn, attract more retail.

“Our goal is to form a historic preservation area, get a residential base and recruit appropriate national retailers,” Vanags says. Incentives are in place, such as a matching funds façade program, to help make this happen.

Overland Park, Kansas

Overland Park has a master plan that will guide the retail development of downtown. The plan will span two decades, serve multiple purposes and, most importantly, tame the monster that is uncontrolled development.

Downtown Overland Park is urban, consisting of 300 locally owned retailers operating out of one- and two-story buildings grouped in a 25-block area that radiates a small town charm, all of which is under the protection of the Downtown Overland Park Partnership, the local business improvement district (BID).

“Years ago a particular big box wanted to come to downtown Overland Park,” says Ronda Barry, executive director of Downtown Overland Park Partnership, “and we discovered there was no downtown master plan for development.” After that experience, the partnership crafted a 20-year master plan for retail development that was approved by the city in May 2001. Key to the plan are four retail districts, each with distinct qualities.

First is Main Street One, which supports retail on the first floor and office or housing on the second. This district will be in what is known as the Santa Fe area, where specialty retailers such as an antique shop or a spice emporium dominate. Do-it-yourself places like make-your-own-pottery, crafts and winery stores are also popular. The Main Street Two district changes the formula, by allowing office and retail on the street level while housing or office remain above. In the Neighborhood district, mixed-use and single-family structures are allowed, but townhomes and condominiums are being emphasized.

“We want to draw a line where commercial stops and housing begins,” Barry says. The fourth district targets Metcalf Street, a major artery that sees 45,000 cars drive through each day, and will be for big box retailers and other commercial properties. Strict design guidelines will be enforced in all the districts.

“We want to create some density,” Barry says, “while we protect the local flavor here.”

Village of Glen Ellyn, Illinois

In the span of eight minutes, you can traverse the Village of Glen Ellyn’s downtown, passing around 150 restaurants and businesses, each with a unique trade or niche. With a little afterthought and a wallet check, one store’s window item becomes a must-have. Just follow the well-marked signs back to the display. The area is easy to navigate, the retailers are diverse and the downtown is cozy. It feels like home and Glen Ellyn wants it that way.

“There is a wonderful hometown atmosphere that our downtown presents,” says Janie Patch, executive director of the Glen Ellyn Economic Development Corp (GEEDC). The non-profit organization is instrumental in attracting and retaining retailers in the downtown area. Patch sees the small town charm as the biggest draw for Glen Ellyn retail and has guided growth in that direction.

Of the businesses downtown, most are independently owned by residents in the village. When looking for new retail, Glen Ellyn will not attract any direct competition to an already established business, protecting local owners and keeping the merchants unique. This type of recruiting has been especially successful in the home furnishings area. Around 25 stores in that market operate in the downtown. From floor tiling and appliances to actual designers, Glen Ellyn offers what any shopper wants for their home. “It is so diverse. Each taste can be satisfied here,” Patch says.
Complementing the merchants are a number of restaurants that form their own retail row. Over the past few years, Glen Ellyn has been adding housing to the downtown. The population density grew and the amount of restaurants kept pace. “This has been an important component of in keeping downtown alive and expanding the hours,” Patch says.

One problem the downtown area faces is its own age. Surrounded by residential neighborhoods, the village must redevelop to keep a fresh look or bring in new retailers. To help out, the GEEDC has a façade program that matches funds for any retailer making a significant improvement to their store. There is also a proposal, due for a public hearing this winter, to redevelop a public parking lot into a retail center with more modern amenities not available in the older buildings.

“Downtown is the heart of Glen Ellyn with that small town charm,” Patch says.

Milwaukee, Wisconsin

City life. It’s not a dirty phrase in Milwaukee anymore. The urban lifestyle is back as people return to the downtown area. The rent is high, but the streets are safe and clean, you can’t beat the walk to work and the entertainment is abundant. It’s a hot time in the brewing town tonight.

“What draws people is the excitement of all the different things that happen within 1 square mile,” says Dan McCarthy, urban development manager for the city of Milwaukee. Over the last 5 to 10 years, 500 to 600 units of housing have been constructed in the downtown annually. Those 800 new residents do not impact the market alone, but that type growth over a decade, combined with a workforce of 70,000 and millions of visitors each year, creates a mass of consumer buying power.

“Downtown Milwaukee is being rediscovered as the entertainment capital of the state,” McCarthy says. As the area’s residential base has grown, an explosion of new restaurants and bars has happened. The retailers are targeting a range of demographics, but focusing mainly on the two biggest constituencies with disposable incomes: empty nesters and the oldest of the Gen-X’ers. Districts have been formed that cater to the different age groups who spend big bucks on entertainment.

The Water Street district is aimed at the younger residential base. Approximately 20 restaurants and bars are doing business in that area, allowing patrons to bar hop with ease in the busy evenings. For the 30- and 40-something crowd, there is the Jefferson Milwaukee district or Water Street in the historic Third Ward. If you want to dance, there is a large club scene scattered throughout the area. Or maybe you need a quiet time by the Milwaukee River. Just stroll along the waterfront until one of the many restaurants along the river walk entices your appetite.

Now other retailers are entering to the market. Borders Books & Music has recently opened a large store on the riverwalk and McCarthy expects more high volume operations to follow soon.

The city has also supported downtown’s growth through other methods like street scape programs, façade renovations, cooperation with neighborhood organizations and downtown safety. Some of the most important incentives are basic tricks that help out the developer, like simplifying the building permit process or eliminating archaic zoning laws. For instance, residential space is allowed on every floor but the first in downtown buildings. “We haven’t had to buy this happiness with a lot of subsidies,” McCarthy says.

Milwaukee is putting an emphasis on maintaining the big city residential way of life and people are responding. “If you are going to be in the city, you have to embrace the urban lifestyle,” McCarthy says. “What you create is real and it’s what the market wants. In the long run, you are going to get more development that way.”


©2002 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.