Whatever the cost of Arlington Heights’ downtown redevelopment, some owners of smaller downtown stores say they could end up paying the real price.
In the last two years, quaint mom-and-pop shops lining the downtown streets gradually have been dwarfed by the large retail and residential developments that have come to dominate the downtown landscape.
Small shop owners had hoped there would be room for both, that their modest stores could coexist next to larger chain and specialty stores, and even benefit from the increased traffic the new stores would draw.
While some still believe that will happen, others are not sure they can wait long enough to find out.
A number of these merchants say their businesses have been hit so hard by construction, climbing rents and soaring property values and taxes–or a combination of those–that they are considering moving their businesses or closing up shop for good.
Some also say the village has not done its part in promoting the downtown area during the construction period and has been reluctant to provide signs directing shoppers to stores still open in the Central Business District.
Quinn Seligmann, owner of Downtown Diane’s, a women’s clothing store in its third year at 11 W. Campbell St., said her business has dropped 50 percent to 60 percent in the last year and that it’s not uncommon to have “zero days,” without even one sale.
Other merchants are having the same experience for days in a row, she said.
“The whole redevelopment has been a nightmare,” she said. “A lot of us can no longer keep our heads above water. I am actively looking to move elsewhere and others are too.”
The redevelopment includes Arlington Town Square, a 13-story condominium building and retail center; Village Green, an 8-story condominium building and retail center; and Metropolis Performing Arts Centre, a performing arts, condominium and retail complex.
The redevelopment is nearing completion and some of the retail space is open for business. Construction is still under way on the condominiums that tenants will begin moving into this summer, said Martha Harley, economic development planner for the village.
Seligmann, a 32-year resident of Arlington Heights, said she doesn’t know if she can wait and is scouting locations in other towns.
John Meinhardt, owner of Victoria’s Books, at 13 W. Campbell, for 2 1/2 years, said he “might move if things don’t pick up.”
“We have had some lean and meager months, and somehow I have been able to make ends meet,” he said. “But some of us are to the point of being bankrupt.”
Two other downtown merchants, who asked not to be identified, also are considering closing their businesses. One is scouting new locations and said a number of other downtown business owners who are considering moving have come along on the scouting trips. The other shop owner may close the business altogether.
Meinhardt and Seligmann said they know of half a dozen or more merchants who are considering a move.
Many own newer businesses that haven’t had time to develop the steady customer base that the older, more established downtown merchants have been relying on.
Mark Rouse, owner of Runner’s High, 7 S. Dunton Ave., said his store’s 10-year track record has helped business. He has made a big effort to promote his store, he said, and added that “business is excellent,” even though his rent has increased.
“It’s way up over what we projected,” Rouse said.
While these are tough times, John Guilfoil, owner of Earth Friendly Choices, a card and gift shop at 157 N. Evergreen Ave., and the new president of the Central Business District Association, said store owners can do things to help themselves, like advertising and keeping evening hours.
“About 10 percent of my business is done between 5 and 7 p.m.,” he said.
Some owners, though, say they can’t afford to stay open later and that the real problem is drawing people to the area.
Shops on Campbell Street have been hit particularly hard ever since Davis Street, which formerly connected Campbell with Arlington Heights Road, a main street, was eliminated in the construction of Arlington Town Square. Now Campbell dead-ends at the back of that new shopping center.
“Nobody knows we’re here,” Seligmann said.
Guilfoil said that will all change when more of the new stores open and residents begin moving into the new condominiums.
“I’m envious of the stores on Campbell Street,” he said. “They have developments on both ends. When things start to pick up, they will benefit.”
Harley, the economic development planner, said the village would like to maintain a mix of smaller eclectic shops and larger retail stores in the Central Business District, which has about 100 shops.
She hopes the smaller shops can survive long enough to benefit from the redevelopment once it is in full swing.
“The village cares about the small shops, and we are worried some might move,” she said. “But we are not convinced (the decision to move) is a function of the redevelopment. We’re not convinced the two are related.”
The hike in property values, taxes and rent some businesses are experiencing is directly linked to the redevelopment, said Ronald Popp, owner of Century 21 Advisors in Arlington Square Shopping Center.
“With all the development, property values are appreciating, which is driving up property taxes,” he said. “That means rents increase.”
Those rent hikes are occurring even before construction is finished because landlords are re-signing leases right now, Popp said.
In some cases, property taxes aren’t just increasing, they are skyrocketing.
Spiros Kalantzis said he paid about $105,000 in property taxes in 1998 on his building at Campbell and Dunton, which houses retail stores and apartments. The year before, he paid about $75,000.
At least two of his tenants have received recent rent increases. The rent at Drummer & Thumbs Book Store, 1 E. Campbell, went up 32 percent, while the rent at Runner’s High increased 35 percent.
“A lot of businesses are in danger down here for that reason,” said Rob Baker, owner of Drummer & Thumbs.
Regardless of their rent, some of the owners said they simply needed more help drawing customers to their stores during the redevelopment.
Harley said the village has helped in that respect, posting two signs near the downtown last summer during heavy construction. The signs are still there.
The owners said that two signs are not enough in a town with about 77,000 residents. So earlier this year some of the merchants made and laminated signs, and hung them around town. The village removed them because they were posted in the public right of way without the village’s permission, Harley said.
After the shop owners pushed for it, the village erected two more signs near the new developments at the end of March, although this still does not satisfy some of the owners.
Part of the problem is that, until recently, the village had not heard from shop owners who are unhappy with the redevelopment, Harley said.
She also said the village has done its part in helping these owners since the construction started:
– A “Shop Arlington” advertising supplement listing downtown businesses has been mailed to residents each November, and the village has distributed brochures promoting the central business district at trade shows.
– The village also has developed posters advertising special events in the downtown and paid for trolleys to bring residents to special events in the downtown area, among other measures.
“We have comprehensively marketed this area, and I really believe we have done a lot to help businesses,” Harley said.
The village will continue to help shops, Harley said, by offering the Shop Arlington guide on the Web site that is being constructed. The site (www.vah.com) is expected to be up and running May 1.
The village also is creating a publication in which businesses can list upcoming events at their stores. Plus, the Central Business District Association and the village are planning to cosponsor a seminar by a business consultant on how to make a business profitable.
To help in the interim, Meinhardt said he asked the village to waive the annual $150 business license fee for Central Business District merchants. He said he was turned down, but Harley said the request is still being considered.
There is more at stake than money, Meinhardt said.
If small businesses move out, they will take their small-town charm with them, he said, leaving downtown Arlington Heights with a newer, more modern feel.
“(The village) lured us into the downtown,” Meinhardt said. “They said they wanted mom-and-pop stores to create a quaint downtown, and what do they do but put chain stores like Gap and Starbucks down here. I feel like we’ve been forgotten.”
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Things are looking up all over town. The renaissance of the downtown is almost complete: More buildings, more residents, more stores—and entertainment. The horses have returned and it won’t be long until the call of “They’re off!” is heard again at Arlington International Racecourse. This section takes you behind the scenes of these major events.
