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A Report:

The STATE OF DOWNTOWN ENGLEWOOD

presented to:

The Englewood Economic Development Corporation

 

Prepared by
N. David Milder
February 2000

ãDANTH, Inc.

All Rights Reserved

 

Contents

  1. INTRODUCTION
  2. OVERALL ASSESSMENT
  3. PLANNING AND IMPLEMENTATION
  4. RECOMMENDATIONS

 

I. INTRODUCTION

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DANTH, Inc. is pleased to again have the opportunity to assess current conditions in Downtown Englewood and comment both on your revitalization process and the progress you have made. This is our third report on the state of your downtown.

For the past 26 years, DANTH, Inc. has focused on the revitalization of downtowns throughout the New York - New Jersey Metropolitan area as well as those in California, Massachusetts, North Carolina, Ohio, Pennsylvania and Vermont. Within New Jersey, the firm has had assignments in Bayonne, Cranford, Englewood, Elizabeth, Leonia, Teaneck, Trenton and West New York. David Milder, the president of DANTH, has written extensively on downtown revitalization, including 1 book, 2 monographs, over 50 technical reports and several articles in journals such as Urban Land, Main Street News, and the Urban Almanac. His book Niche Strategies for Downtown Revitalization is available through the American Planning Association, The Council for Urban Economic Development and the International Downtown Association.

Since 1994, DANTH has completed a number of assignments for the Englewood Economic Development Corporation. DANTH’s May 1994 report was included in your document The Downtown Englewood Revitalization Corridor: The West Side of Downtown Englewood, which was issued in March 1997. In September of 1997, DANTH prepared An Assessment of the Downtown Revitalization Strategy, which was presented at a meeting of the Englewood City Council. In September 1998 DANTH prepared and presented to the Englewood City Council A Report: Englewood, NJ: The State of the Downtown.

Because of Mr. Milder's work for the EEDC and the frequent visits it has required, he is very familiar with your downtown and the city’s efforts over the years to revitalize it.

 

II. OVERALL ASSESSMENT

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A. Bricks and Mortar Show The Tide Has Turned on the West Side!

Today, after more than 25 years of effort by local leaders, the array of economic forces on the West Side are no longer headed for decay and decline, but toward sustained prosperity and growth. The Great Redevelopment Divide has been passed. The private sector most definitely has become interested in this part of the downtown. It is quickly losing its image as "the wrong side of the tracks." Evidence of this incredible passage is easy to find.

In 1994, the West Side was dominated by tired, worn-out structures that provided small, low-quality retail and office spaces for marginal businesses in an unfriendly and scary environment. Because of the projects described above, by the end of 2001, this will not be the case. Instead, large portions of the West Side will be new or renovated and occupied by quality business operators.

Retailers have two questions that they usually ask quickly about a potential site: 1) Who else is there? and 2) How are they doing? In years past, there was "no one else there" on West Palisade and how they were doing consequently was a moot point. In contrast, by the end of 2001, it is very likely that there will be at least six to eight high-quality national retail chains on West Palisade Avenue and, if the current trend continues, they will be reporting strong sales volumes. These nationals will make it easier to attract high quality independent merchants to the West Side -- but the property owners will have to make a real effort to recruit them and there must be appropriate spaces left for them to lease.

The West Side soon will join the East Side in having retail prospects searching for locations, but not having enough quality space or parking to satisfy all of them.

New Challenges for the West Side. As the West Side passes over the Great Redevelopment Divide into desirability, the challenge shifts from kick-starting economic development to controlling and channeling it. New issues will emerge, while some old ones will require much more definitive responses than they have received in the past:

B. The East Side Is Thriving

The East Side continues to thrive. The past year has seen some "churn" among the retailers. Randi Lynn and Willa's have been sold. La Parma opened and closed. Ben & Jerry's, Portage, Dean Place, Main Street, Zan's, and Mediterranean Grill opened. Too much churn indicates decline. However, some churn is invigorating for a downtown, since it provides possible entry for new ideas and stronger competitors. The amount of churn on the East Side over the past year was healthy.

The John Harms Center for the Performing Arts completed its expansion to 1,400 seats and with its new air conditioning is able to operate 12 months a year.

Brokers representing quality retailers continue to visit the East Side and wish they could find locations there for their clients.

Personal observation strongly suggests that the pedestrian traffic along East Palisade has increased significantly over the past year.

 

C. The Downtown Overall

Downtown Amenities. Since 1998 the downtown has experienced a number of physical improvements to its streetscapes. The net result is a significant improvement in the downtown appearance which, in turn, has created a more attractive environment for pedestrians and strolling shoppers.

Parking. DANTH has been working in downtown Englewood since the late Winter of 1994. Parking has been an issue throughout this entire period. The time has come to squarely face this issue in a bold and systematic fashion, even if that means a parking deck.

The City has been extremely inventive on the West Side. By the Spring of 2000, 110 new parking spaces will have come on line in the leased Elks lot on Bennet and the municipal lots on James and Williams Streets. Using the Mackay Park lot for long-term employee parking is now also under consideration.

On the East Side, there are plans to renovate Lot "A." Depending on the configuration, which might include a one or two tier parking deck, this project could cost between $400,000 and $2,000,000.

Linking The Downtown To The Redevelopment Around Route 4 and I-80. The City has recently designated 150 acres in this part of Englewood as an Office Enterprise Zone. There is reason to believe that this location has already generated substantial interest within the development community. In order to fully identify and channel this interest, the City is holding an investment conference in late March of this year to which important developers, real estate brokers and bankers in the region have been invited.

For the downtown, the redevelopment of the Office Enterprise Zone represents many possible advantages. For example, the new office workers constitute an important potential addition to the noontime customer base. Also, the zone's parking, with proper linkages such as a monorail or fast van shuttle service, might provide overflow parking for patrons of the Harms and downtown retail shops during evening and weekend hours.

Now is the time, before the redevelopment of the area takes off, to identify:

Traffic Problems Caused By Supreme Oil. As the revitalization of downtown Englewood has progressed, the operations of this industrial firm have resulted in increasingly negative impacts on local traffic. Supreme Oil generates significant truck traffic on S. Dean Street and these 18 wheelers often block traffic as they enter or leave the facility. They also strangle traffic flow on S. Dean when they double park in the street. However, the largest negative impact of Supreme Oil is caused by the operations of the long tanker train on the Conrail track that daily causes traffic on Palisade Avenue, both East and West, to come to a standstill during the critical lunchtime shopping hours. It is questionable whether these operations of the company are consistent with the health, safety and welfare of the community. An effective action plan needs to be formulated to deal with the traffic problems caused by Supreme Oil.

Downtown Housing. A 1998 survey done by the Rouse Corp for the Brookings Institution and the Fannie Mae Foundation found that one of the fastest growing segments of the nation's housing market is in the downtowns of major cities. However, the growth of downtown housing is not restricted to large cities:

In New Jersey, downtown housing projects are appearing in such communities as Westfield, Cranford, Elizabeth, Hoboken, Jersey City, and South Orange. In New York, multi-unit housing structures long have been integral parts of the downtowns in such communities as Bronxville, Scarsdale, Pelham, and Garden City.

Many people are now interested in living downtown:

More housing is good for downtown revitalization because:

More market-rate housing is being proposed for downtown Englewood than previously anticipated. This trend should be applauded and encouraged. It will help to create and maintain a healthy and vibrant downtown Englewood.

DANTH is not alone in encouraging more downtown housing. Practically every consulting firm that specializes in downtown revitalization has come to a similar conclusion. Even major nonprofits that have long been involved in the revitalization of downtowns, such as Regional Plan Association, the National Main Street Center, the International Downtown Association, the Urban Land Institute, etc., are strong advocates of increased downtown housing. Conferences sponsored by these organizations are replete with sessions on the virtues of downtown housing and how to get it developed. Similarly their printed publications are full of articles on this subject.

Niche Marketing. It is well-known that the proposal to build a Home Depot near Route 4 led to a rancorous dispute within the community and the eventual withdrawal of that proposal. Less appreciated are the problems that have arisen in its wake. One is the downtown's niche marketing program.

In our 1998 report on the state of the downtown, DANTH reported on the advantages of a niche marketing program for downtown merchants and noted some initial steps that had been taken. During 1999, the Chamber of Commerce, working with the EEDC, designed and implemented an effective advertising campaign for the downtown's wedding niche. This campaign was intended to be a model for similar cooperative marketing campaigns for the downtown's home center, specialty women's apparel, entertainment and children's clothing niches. Unfortunately, the wedding niche campaign faltered and no other niche marketing campaigns were developed. The dispute over Home Depot had apparently fragmented participants to the point that cooperative ventures became impractical.

This is very unfortunate since all of the downtown merchants would benefit greatly from these niche marketing programs. Ironically, such a campaign for shops in the home center niche would be extremely timely and rewarding.

Home Depot is a very large, very powerful and very successful retailer. A review of its behavior in other locations shows that Its decision to enter a market area is usually very serious and determined. They don't quit or easily take defeat.

The boundaries of the "trade area" for one of their superstores will not be congruent with those of any particular political jurisdiction. Moreover, there are usually a number of locations that will enable Home Depot to penetrate the same market area. Consequently, if defeated on one location in the market area, Home Depot can be expected to look for another nearby, though perhaps in another community. In other words, Home Depot might achieve many of its goals with a location in Teaneck, Leonia, Bergenfield or Fort Lee almost as well as with the Route 4 site. It is only logical to assume that Home Depot will be looking for such an alternative site.

Whether some retailers may be prone to feeling the competitive pressures of a Home Depot will be determined by the boundaries of the superstore's trade area and not the borders of the political jurisdiction these merchants are located in. In other words, the shopkeepers in downtown Englewood who are liable to feel increased competition from a Home Depot will do so whether the superstore is in Englewood or in a nearby community.

Superstores are sufficiently powerful that they do not have to be demonized. The ability to successfully cope with them is enhanced by a realistic view of their powers and abilities. While there is some sound and systematic research on the impact of Wal-Marts on downtown retailing, there is little comparable research on Home Depot. After a computerized library search of articles and books and a similar search on Lexis-Nexis, DANTH has concluded the following about the probable impacts of a Home Depot:

Organizing and marketing downtown Englewood's home center niche will help to make it real and competitively effective. Shops in the downtown's other niches should also become more engaged in joint marketing and promotional efforts.

Englewood's Public-Private Partnership. In our last report on the state of the downtown, completed in September 1998, DANTH stressed the value and importance of Englewood's public-private sector partnership. This partnership projected an image of Englewood having an effective and consensual leadership that is capable of acting expeditiously with the private sector. This image was crucial for interesting developers, real estate brokers and retailers in downtown development projects. The ruckus about Home Depot threatens this very important and very positive perception within the development community.

This erosion must not be allowed to happen. Especially, since the revitalization of the West Side has proceeded, so far, unaffected by the vicissitudes of the Home Depot proposal. Group USA is now before the Planning Board with its proposal for a second project and a site review for the proposed Armory Street retail project will begin shortly. If these two projects obtain their approvals and permissions with suitable consideration and speed, then steps should be taken to place articles on the resiliency of the Englewood process in publications read by the development community (e.g., The New York Times, Real Estate Weekly, etc.).

A note of caution! At the time this report is being written, there is no observable reason to believe that either the Group USA II Project or the Armory Street Project will meet the same kind of intense opposition that the Home Depot Project encountered. However, should one or both of these projects confront such heated opposition and be defeated, then the revitalization of downtown Englewood will be severely endangered. Serious developers and retailers will then be very prone to perceiving downtown Englewood as a risky environment for investment. This erosion of Englewood's reputation as a place to do business is also very likely to result in reduced interest by the private sector in the redevelopment of the Office Enterprise Zone's 150 acres.

 

III. PLANNING AND IMPLEMENTATION

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Across the nation, downtown Englewood has an enviable reputation for its success and its model downtown revitalization program. An article on it was featured last summer in the magazine of the National Main Street Center. Peter Beronio, Englewood's Community Services Director, is constantly requested to make presentations on it. In just the past year he has done so at conferences sponsored by the National Main Street Center, Main Street New Jersey, the International Downtown Association, Downtown New Jersey and the International Council of Shopping Centers.

One of the keys to the success of the Englewood model is its staff's ability to develop comprehensive plans that are viable and consequently implemented. In May 1994, DANTH submitted a series of strategic recommendations aimed at stimulating the revitalization of the downtown, especially the West Side: make the downtown more pedestrian friendly; provide more parking; provide larger and better retail spaces, and address the major quality of life problems on the West Side. DANTH also argued that the redevelopment of the Krantz properties (now the Group USA Building) could spark the revitalization of West Palisade Avenue.

Working under the direction of Bob Benecke, the City Manager, Ken Albert, the City Engineer and Planner, and Peter Beronio forged a very comprehensive set of plans to implement DANTH's strategic recommendations. Their plans were presented to the City Council in September 1997. Reviewing these plans in February 2000 shows that an enormous amount of the work they called for either already has been completed or will be soon during the coming year.

    1. Humphrey Street Building. This formerly vacant and deteriorating eyesore has been demolished. Its redevelopment awaits movement on a possible project on West Palisade at Humphrey Street
    2. Armory Street. The revitalization of this street has done much to alleviate quality of life problems in the downtown. It properly has received national attention. However, the buildings at 23, 24 and 26 Armory still need rehabilitation. The City owns 24. Propitious owns 23. An individual owns 26
    3. Mackay Park. The rehabilitation of this park was completed in 1997. It has helped improve quality of life problems while providing open space for local residents and an asset for the downtown
    4. Elmore Avenue. The health of residential areas in and near the downtown has a great influence on it's well-being. The reconstruction of this street near Mackay Park in 1996 helped improve the surrounding neighborhood
    5. Englewood Avenue Intersection (Wides Corner). In a neighborhood abutting the downtown, a traffic signal has been installed at this key intersection and curbs, sidewalks and lighting have been installed to provide an safer and more attractive environment. However, many of the storefronts need rehabilitation. Placing this area in the SID might help improve its prosperity
    6. Mattlage Place. Bordering on the west of the Englewood Avenue intersection. Infrastructure improvements were completed in 1996
    7. West Palisade Avenue Traffic Islands. The reconstruction and re-landscaping of these islands along a key downtown gateway is scheduled for completion in 2000.
    8. Liberty Square Project. Mostly done, but City will make it ADA compliant in 2000.
    9. West Palisade Avenue Sidewalks and Lighting. About 80% done. Will be completed in 2000.
    10. East Palisade Avenue Sidewalks and Lighting. Will be completed in 2000
    11. Reconstruction of James Street, Charles Street and Grove Street. Completed
    12. Depot Park Play Area. Completed, using private funds.
    13. Parking Lot "A". Work will begin in 2000
    14. James Street Parking Lot and Parking Lot "H". Will provide more shopper parking. Now under construction and expected to be substantially completed by the Spring of 2000
    15. Parking Lot "B". Was reconstructed in 1996 to provide a landscaped and lighted area
    16. The Krantz Building. Now the Group USA Building. And this project has indeed sparked new interest by developers and retailers in the West Side
    17. The Krieger Building. Renovations of this building were completed in 1999
    18. DiStasio/Kiddie World Property. A proposed project for this site is about to go before the Planning Board
    19. The Gurunathan Building. Strategically located across James Street from Group USA, this building remains problematical in its tenants, appearance and the loiterers it attracts

Even a cursory perusal of these results suggests a strong and direct correlation between the success of these plans and the overall health of downtown Englewood.

IV. RECOMMENDATIONS

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    1. Parking Deck. Build the parking deck on Lot A that has long been needed. As we demonstrated with a photograph in our last report, such a deck need not be ugly or create a retail discontinuity. Old Town in Alexandria, VA, the Gas Lamp District in San Diego, CA and Old Pasadena, CA -- all known for their concerns about historic preservation -- have garages that don't look anything like garages. Downtown Cranford, another design concerned community, is about to build a similar structure as part of its Cranford Crossing project. The deck would also help meet parking demand on the West Side. To the degree that it stimulates better businesses to come into the block between Van Brunt and Humphrey Street on West Palisade, it also will help integrate the two sides of the downtown
    2. Way-finding System. DANTH suggested this in our last assessment. Given the scattered locations of your parking resources, a good signage system is needed to maximize their use. A good system would also help people find downtown attractions. Way-finding systems make people feel more at ease and comfortable downtown, accordingly they are an important "customer service," just like adequate and easy to find parking. The graphic design is critical to the effectiveness of a way-finding signage system. Consequently, DANTH doubts that it can be designed in-house by the City's staff.
    3. More Downtown Housing. It is perhaps time to develop a formal plan for developing more housing in and around the downtown. Such a plan would identify how many existing units could be improved, how many new units could be added and where they should be located.
    4. Quality of Life Issues. DANTH recommends better coordination between CCTV surveillance and the deployment of police patrols. Also, police in such cities as New York, Philadelphia, Baltimore and Dallas have used a series anti-loitering techniques with impressive success. These techniques are probably transferable to Englewood. George Kelling's new book Fixing Broken Windows also is filled with ideas that the local police might use to address this problem. Furthermore, the 3 houses on Armory Street should be rehabilitated. This would alleviate the remaining "visual signs of disorder" on this street
    5. Linking The Two Sides Of Downtown. As suggested in our last report, this is becoming easier to do as the West Side strengthens. But the Conrail tracks and Van Brunt still constitute a pedestrian moat. Better retailers and better looking stores on the block between Van Brunt and Humphrey Street would be a big help.
    6. The Mental Health Building. Move the mental health agency out of its current building on W. Palisade. Formulate a rehabilitation plan for that building, which is now greatly underutilized and is of architectural interest
    7. Niche marketing. It is very important from a number of perspectives that the City and the Chamber again work closely on effective niche marketing campaigns.
    8. Cinema. If the Group USA II and the Armory Street projects happen, then the West Side will no longer need the customer flow that would be generated by a 10 screen, 2,600 seat movieplex. But, entertainment remains a niche that most experts agree will strengthen downtowns over the next several decades. Downtown Englewood already has a significant entertainment niche. Adding a 5 or 6 screen, 600 seat cinema focusing on independent films would make this niche more robust, while not stressing parking resources or congesting traffic. Theater operations of this sort also tend not to attract the youth market. DANTH recommends that a feasibility study for such a project be conducted, with a prime task being to find an appropriate location for the movieplex.
    9. The Gurunathan Building. A physical rehabilitation plan for the Gurunathan Building should be created within the next six months. It should be based on a evaluation of highest and best uses for the property given the context of its downtown setting. Given its location opposite Group USA I and the new Armory Street retail project, it is important that this property be improved
    10. Place the Wides Corner Area in the SID. Properties within a SID do not have to be in one contiguous area. This area is too small to support a SID by itself. Participating in an existing and effective SID would be advantageous to the businesses in this small commercial area that borders on the downtown. Strengthening this area strengthens the downtown
    11. Supreme Oil. Whether the firm needs to be jaw-boned or relocated, an effective action plan is needed to eradicate the traffic problems Supreme Oil is causing in downtown Englewood. DANTH recommends that such an action plan be formulated and implemented as quickly as possible
    12. Create Linkages to Rte 4 Developments. DANTH recommends formulating a plan that would first identify feasible economic, promotional and transportation linkages between the downtown and the redevelopment of the Office Enterprise Zone and then detail how they can be created. We also recommend thinking outside of the box and entertaining some apparently very bold ideas. For example, while a shuttle van service between downtown and the Office Zone is an obvious possibility, an elevated monorail running above the Conrail right of way might also be feasible and more advantageous. Aeromovel, for example, has a pneumatically propelled system which has been built for similarly short runs at relatively affordable prices. Developers might be attracted to bringing the stations into their buildings or constructing their buildings adjacent to a station. The plan should also detail how parking might be "shared" given different usage patterns in the two areas. An analysis of the economic functions each area would specialize in and how they might compliment each other would also be useful. The State has Smart Growth Grants that would pay for such a study.