Merchandizing the Storefront

CBD-1

Observation

Third Street is the historic retail street of the Downtown. It has lost this function.

Discussion

The disappearance of retail from Third Street is a phenomenon of the 1960’s. It was the result of several policies. First was the granting of planning permission to create urban sprawl, including new shopping centers and shopping malls, all subsidized by the construction of streets and highways. Second was the misguided attempt to retrofit Third Street as a pedestrian mall, involving a disruption from which the shops never recovered. Third was the perceived lack of parking in the Downtown. However, the Gibbs study estimates that there is a market for 150,000 to 300,000 sq. ft. of commercial in the Downtown.

Recommendation

Implement the merchandizing plan pro-posed in the Gibbs Report. This will require the formation of a merchants’ association that includes both owners and tenants. It may require the contracting of a specialized professional to proactively recruit prospective merchants.

Responsibility

Downtown Development District

Project Status

Because the Baton Rouge Area Foundation is responsible for leasing the retail spaces in the Arts Block, LaSalle and Galvez Garages, a merchandising plan and a marketing strategy have been developed. In February 2000, H. Blount Hunter of H. Blount Hunter Retail and Real Estate Research, completed a market assessment and merchandising/leasing study for downtown. The study revealed that there are 84,000 square feet of vacant first floor space in the CBD, which would add an additional $20 million in revenues to the current $33.3 million in annual sales for downtown.12. Site Assembly at Auto Hotel (OSCD-3) The State purchased three key properties adjacent to the Auto Hotel which made the Arts Block possible.

Plan Baton Rouge has funded a Storefront Grant Program commencing in 2001 that matches private funding up to $2500 per project for façade improvements along within the DDD. Eight projects have been completed since 2001, with four applications pending for 2003. Completed projects include: Roy Phelps Gallery; Butler Furniture; Restoration of Coca-cola sign; McGlynn, Glisson & Koch; Avoyelles Cafe; Piccadilly Building; Capitol Grocery and 654 Main Street. McGlynn, Glisson & Koch Law Firm graciously returned their grant award to the DDD to spur additional investment.

The DDD has formed an Entertainment District Committee which has defined an entertainment district within a targeted area downtown. After 120 business leaders travelled to Austin, the momentum has generated new interest in this process. On February 11, 2004 the Metro Council passed an amendment to the ordinance that allows alcohol to be served outdoors at downtown restaurants.

An exciting project that will have tremendous impact in this district was announced on August 5, 2003. The long vacant Heidelberg “Capitol House” Hotel was sold to the Baton Rouge Community Development Corporation who will restore the historic structure into a 315-room luxury hotel operated by Hilton. The funds to purchase and renovate the hotel will be generated from a special taxing district formed specifically for this property.

Implementation

Explanation of Terms

Product

Merchandizing Program

Responsibility

DDD

Implementing Agent

DMA

Feasibility Analysis

Unnecessary

Initial Financing

Unnecessary

Project Financing

DMA ongoing dues

Timing