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Downtown dilemma

Merchants seek new ways to keep ‘Main Street’ thriving

Jennifer Potash, Staff Writer
   What will it take to spruce up downtown Princeton — a special improvement district, a coordinated volunteer effort or a preservation program?
   As Princeton Borough merchants consider a special improvement district for what seems like the umpteenth time, they are now taking a look at how other municipalities have used a SID and what other tools may be worthwhile.
   Under the SID concept, receipts from a special tax on downtown businesses within the special improvement district pay for marketing, beautification and redevelopment projects.
   Unlike many downtowns that nearly became ghost towns during the late ’80s and early ’90s with lots of empty storefronts and tired streetscapes, Princeton has remained buoyant during the recent recessions and construction phases for the new downtown library and parking garage.
   But many merchants have criticized a perceived shabby appearance on some stretches of Nassau and Witherspoon streets due to problems like garbage overflowing from receptacles and stubbed out cigarettes or gum splattered on the sidewalks.
   The Community Based Neighborhood Retail Committee of Princeton Future, with merchants and citizens seeking ways to revitalize the downtown ranging from improving maintenance to attracting a retail mix that appeals to residents as well as visitors, recently commissioned a study on options for Princeton Borough.
   The evaluation was conducted by Downtown New Jersey, a nonprofit organization comprising planners, developers and commercial district managers that helps preserve and improve New Jersey’s downtown areas.
   The Downtown New Jersey team found many positives about downtown Princeton — but also noted a wide array of opinions from the stakeholders regarding the downtown’s direction. The consultants recommended all the interested players need to form a common vision, hire a permanent staff to implement that vision and create a stable source of funding to pay for the improvements. The consultants will issue a written report to Princeton Future soon.
   There is no consensus yet from the downtown merchants and business owners on whether to implement a SID.
   Torben Huge-Jensen, owner of housewares and gift store Bowhe and Peare on Hulfish Street, said he has not yet received enough information to support or reject a SID, but as a member of the Princeton Future committee he simply wanted to start a dialogue among the merchants.
   Several key downtown players are lukewarm, at best, to a SID.
   The Princeton Regional Chamber of Commerce, which recently moved back downtown after a nearly decade-long absence, supports a coordinated effort between the chamber and the volunteer Borough Merchants for Princeton.
   "What I gleaned from the (Downtown New Jersey) presentation was Princeton lacks a common vision and a SID may be a solution to a problem we haven’t defined," said Kristin Appelget, president and CEO of the Princeton Regional Chamber of Commerce.
   And the annual assessment associated with a SID seems to be "a tax on top of a tax," she said.
   Kathie Morolda, owner of the Cranbury Station Gallery in Palmer Square and president of the Borough Merchants for Princeton, said before going the SID route, efforts to team up with the Chamber of Commerce and working with the Borough Council over garbage problems is a better step.
   "No one is saying no at this point," she said.
   As a merchant in Palmer Square, which handles maintenance, promotional and marketing campaigns for its tenants, Ms. Morolda is sympathetic to the SID supporters.
   "There are a lot of very beneficial things a SID could offer," she said.
   Some first efforts with the Chamber of Commerce, including a networking session held Thursday evening at the Writer’s Block garden off Hulfish Street, and the willingness of the chamber to refer large companies moving into the Route 1 corridor to local Princeton businesses, are yielding results, Ms. Morolda said.
   Also, Princeton University, which is opposed to the SID, had offered support to the volunteer effort, Ms. Morolda said.
   SIDS typically exclude nonprofit organizations.
   Lambertville, which has about 350 businesses in its downtown, recently rejected a consultant’s proposal to establish a SID, preferring to work with its local Chamber of Commerce. While the Downtown New Jersey consultants strongly cautioned Princeton Borough not to merely copy what other downtowns have done, some formerly floundering downtowns benefited enormously from a SID or other revitalization efforts.
   The Monmouth County community of Red Bank, more than a decade ago, was called "Dead Bank" due to high vacancies and a rundown streetscape.
   After forming a SID, called Red Bank River Center, the downtown evolved into one of state’s more sought-after locations.
   A 30-member board made up of local officials, residents and merchants oversee the policy and planning implemented by a two-person staff, said Harriet Cook, assistant director.
   While assessments on the merchants vary, the Red Bank SID has an annual budget of $434,000 with about $190,000 dedicated to debt service for past capital improvements to the streetscape, Ms. Cook said.
   During the creation of the SID, some merchants sought to be excluded and the plan for a much wider SID was dropped, Ms. Cook said.
   While one or two merchants in the SID have objected to the district or the assessments, for the most part a SID is a selling point in attracting new businesses, said Tricia Rumola, director of Red Bank’s SID.
   "We help them get the myriad of permits they need from the town, get articles in press, help them with promotions," she said.
   The revitalization complete, the Red Bank SID aims to make Red Bank not only a destination town for New Jerseyans but for the larger tri-state area, Ms. Rumola said.
   Another option for downtowns with a historic character is The National Main Street Center of the National Trust for Historic Preservation.
   Lawrence Township joined the program for the revitalization of its downtown section on Route 206.
   Lawrenceville joined the national Main Street organization in 1996 and the state Main Street program in 1997, said Ann Garwig, executive director of Lawrenceville Main Street. A 14-member volunteer board of directors sets the policies, while Ms. Garwig, the sole employee, provides the professional guidance and leadership.
   The relatively small size of the Lawrenceville downtown was a better fit with Main Street than a SID, Ms. Garwig said.
   Prior to the Main Street program, Lawrenceville struggled with outmoded and vacant buildings and faced increased pressure from the Route 1 malls and other shopping centers, Ms. Garwig said. Since the program started, the buildings have been renovated or rebuilt and more than 40 new businesses have been added, including more restaurants and a small inn, Ms. Garwig said.
   Unlike a SID, Main Street programs do not assess property owners but rather rely on voluntary contributions and fund-raising and grants, she said.
   "I would say a majority (of the businesses) do contribute," Ms. Garwig said.
   Streetscape improvements included new sidewalks, teak benches and a refurbished parking lot, she said.
   Lawrenceville Main Street also keeps a full seasonal schedule of events that draw both residents and others from surrounding communities, Ms. Garwig said. The Lawrenceville Main Street program has also gotten a major boost from its largest neighbor, the Lawrenceville School, which contributes financially as well as offering its facilities for events, she said.
   Westfield, in Union County, combines both a SID and membership in Main Street USA, said Sherry Cronin, executive director of Downtown Westfield Corp.
   The district contains 18 blocks and 430 businesses, of which 42 percent are national chains and the rest are regional chains or independently owned businesses, Ms. Cronin said.
   A Main Street community since 1993, Westfield started a SID in 1996 due to a lagging volunteer base and concerns about a stable source of funding for the various improvements, Ms. Cronin said.
   The SID’s effort also led the preservation of the Rialto, a movie theater that is a key component in downtown entertainment, she said.
   "You can go to a movie and then go to a restaurant," she said.
   With an annual budget of about $377,220, overseen by a board of directors, the average annual assessment for the businesses within the district is $1,500, Ms. Cronin said. Compared to Westfield’s $90 million tax base, Ms. Cronin said, the SID budget is less than a third of one-percent of the town’s overall spending.
   For the assessment, business owners not only benefit from the streetscape improvements but also are included in marketing campaigns and special event programming, including a Spring Fling Arts and Crafts show that draws 25,000 people in April and September, she said.
   The volunteer route seems to work for Pennington Borough, which has a small downtown.
   A group of citizens, merchants and elected officials formed a Streetscape Committee to make recommendations for sprucing up the downtown’s appearance with new lighting, sidewalks, signage and benches. The committee is finalizing its report, which will also address funding, such as municipal bonds, private donations and grants, said Pennington Borough Councilman Jim Lytle, a member of the committee.
   Also, the Pennington Business and Professional Association is striving to draw not only the municipality’s residents but out-of-town visitors with special programs and a cooperative approach, said Chris Murphy, owner of The Front Porch gift shop on Main Street.
   A Fourth Friday program encouraged merchants to stay open past 6 p.m. the last Friday of each month. Despite heavy rains on the Fourth Fridays this summer that led to poor turnout, Ms. Murphy said the program will continue through the fall.
   Through the merchant association, the downtown businesses plan to pool their resources for advertising in local medial outlets, Ms. Murphy said.
   Ms. Murphy said she is enthused about recent additions to the downtown mix, a close-knit business community, including a new day spa and sushi restaurant that will attract other businesses.
   Cranbury, a small township in Middlesex County, also relies on a volunteer effort of its local business association as well as other local clubs to handle downtown improvements, said Ms. Morolda, who has another gallery in Cranbury and is president of the Cranbury Business and Professional Association
   "We’re not trying to be another downtown Princeton, but we do want to encourage people to remember there is a lovely downtown in Cranbury," she said.
   Princeton merchants and related organizations all hold various views about whether a SID is right for downtown Princeton, but most seem to keep an open mind.
   "You never say never in business," Ms. Morolda said.