City councilors want diverse downtown
A more diverse downtown.
That is what Iowa City city councilors have long said they want for the area currently dominated by bars. And now, city officials are working to start an organization specifically designed to help new businesses succeed.
Earlier this year, Iowa City officials invested $45,000 in a feasibility study to evaluate the economic climate of downtown. The study found that the city would benefit from establishing an organization — what it terms an “incubator” — to provide services and support for new companies, such as specialized equipment, government grant or loan assistance, and networking.
The study, prepared by the Regional Business Center at the University of Northern Iowa, suggested that the organization, which would be the fourth of its kind in Iowa City, should be in place by May 2011. This center would differ from others in the city by focusing on “attracting large numbers of early stage entrepreneurs,” according to the study.
“We’re looking at ways in which we could work with the community to provide these services that our study says would be successful,” said Wendy Ford, Iowa City’s economic-cevelopment coordinator.
According to a National Business Incubation Association report cited in the study, 87 percent of businesses helped by such organizations were still operating after five years, compared with 52 percent of the general business population.
The study was completed before the 21-ordinance took effect, but some say if the ordinance remains after the November election, many downtown bars will close and leave empty spaces for new businesses. Councilors said they are hoping to add more variety to downtown in the coming years.
Councilor Mike Wright agreed a permanent 21-ordinance would likely mean change to the type of businesses downtown, especially with the city ordinance prohibiting new bars from opening within 500 feet of existing ones.
This rule may give other types of businesses a chance to move in, but the large size of many existing bars may pose a challenge for retail stores.
That’s why Councilor Regenia Bailey said she could foresee music venues using the locations, and Wright noted theaters could move into the spaces.
Councilor Connie Champion said she has no fears for downtown, despite an decrease in sales for some businesses.
“I don’t see it to be doomed,” she said. “I think it’s going to be healthy.”
But Al Risk, the owner of Pizza on Dubuque, 5 S. Dubuque St., said its weekend sales have dropped by nearly 30 percent since the 21-ordinance went into effect, and he wants the ordinance to be repealed.
“The future of my business depends on this vote,” he said. “It’s just killing us.”
Pita Pit, 113 Iowa Ave., has also seen its business take a significant hit as well. Manager Jen Conway said sales have decreased a couple thousand dollars a week.
While food venues that serve a late-night crowd are suffering, retail stores haven’t seen the same effect. And while things downtown may not change right away, an expert said there may be long-term effects.
Paul Heath, director of the University of Iowa Small Business Development Center, said he thinks if the 21-ordinance stays in place, lease rates downtown could be lowered, increasing business accessibility to entrepreneurs.
“You can’t change businesses overnight, but in the long-term, the mix of businesses will change,” Heath said.
One Iowa start-up has recently taken advantage of some space downtown. Raygun, a novelty T-shirt shop with its first store in Des Moines, opened this month at 103 E. College St.
Owner Mike Draper said the location is prime because students are the store’s target customers.
And Nick Arnold, the executive director of the Iowa City Downtown Association, said one of the most important things is to make sure downtown has plenty of activities to offer the community.
“That is always the goal, to have diverse options for downtown,” he said. “That is what makes it the unique destination, having numerous options when you come down here.”
comments powered by Disqus