Lower Downtown District, Inc.

Special Retail Issue

Dec 13, 2000

Lower Downtown's retail market is growing up. And, like any great character poised on the brink of a life change, it is experiencing its share of growing pains.
Retail is an integral ingredient of the neighborhood's mixed-use identity. Area shops, galleries, and restaurants make LoDo an interesting, fun and lively place to live, work, and shop. But, these are changing times. And, though it stands firm on its historical foundation, LoDo's retail market still has one big challenge.
"There are not enough bodies on a daily basis in the neighborhood to support conventional retail," explains Unique Properties' Kelly Greene, one of downtown's foremost retail brokers. "It's a big risk for retailers to come to LoDo. Its uncharted water." And, nearby options like Larimer Square and the 16th Street Mall offer two things that LoDo doesn't-a proven track record, and high pedestrian count. The bottom line (and LoDo's quagmire)-the area needs more pedestrian traffic to draw retailers-but it needs a cluster of retailers to draw more pedestrians. (See Critical Mass) so, what is LoDo to do?
One of the major factors currently driving LoDo's retail future is the influx of office buildings into Lower Downtown. Three new buildings, the Millennium Financial Center, 1899 Wynkoop and 16 Market Square together total one-half million square feet of primarily office space. Nick Pavlackovich, Senior Vice President of Cushman Reality Corporation and leasing agent for the Millennium, estimates these projects will bring some 2,000 additional employees to LoDo each workday. Where will these new consumers spend their lunch hours? What kind of products and services will they demand? In short, what change will LoDo retail see as a result of this trend?
Another major player in the retail market is the growing residential population in Lower Downtown and surrounding neighborhoods. Notes Cindy Christensen, Economic Development Partnership (DDP), "Retailers look a lot at the residential population. The residential being constructed in CPV (Central Platte Valley) will expand the market for LoDo retailers." This local population increasingly demands services like hardware stores, dry cleaners and bakeries. Three new neighborhood markets have recently opened in Lower Downtown are a welcome testimony to this trend.
But, residents and visitors still see a need for other options. Says Virginia West, who works in LoDo, "A drug store would be great. There isn't anything like that down here-where you can get things like Kleenex and makeup.
Proposed changes for the 16th Street Mall Shuttle, light rail and Denver Union Terminal (DUT) are also promising for retailers. Explains Marilee Utter, RTD's Transit Oriented Development Specialist, "When you start running thousands of people a say through the station (DUT), that effectively raises your population for retail. Generally, the biggest users of transit are office and residential. As either grow, they will be looking for more shopping."
This eclectic and growing mix of office workers, residents and tourists will add to the existing market, which includes a multitude of Coor's Field sports fans. How does this urban sports venue fit into the retail picture?
The next few years will prove crucial in reshaping LoDo's retail personality. How will it adjust to this period of intense growth and change? Everyone agrees on one thing-LoDo needs more retail. However, in drawing new retailers, LoDo's one-of-a-kind ambience must remain intact and functional. "Our retailers are precious," states Dan du Bois, LDDI Executive Director. "Our challenge is to continue to grow the market into a way that enhances the entire historical neighborhood."

The Crux of "Critical Mass"
"Critical mass" is well?…critical. It makes the retail universe click. It is what a healthy retail market strives for- and retailers crave.
It is an insider term that those who work with retailers, restaurants, real estate, or the like, throw around like the name of a well-known landmark, "Coors Field. The Pepsi Center..and you know..critical mass." But, for those of us on the outside, it needs some expanding. Basically, says John Imbergamo, President of The Imbergamo Group, a restaurant consultant, "The term refers to the idea that consumers want to shop where there are a lot of stores. That's why malls work."
So, what does this have to do with LoDo? Explains Imbergamo, "LoDo has a critical mass for restaurants, but not yet for retail." The problem he continues is that "It's not easy to achieve. No one wants to take the first step."
It takes someone making that commitment to make the all-important critical mass happen. For instance, says Imbergamo, "Much of the credit for providing critical mass for restaurants and bars in LoDo goes to Coor's Field. It almost guaranteed Business." But so far, he notes, "There is no Coors Field for retail."

Welcoming Neighborhood Markets
Fresh produce, natural-grown turkeys, Italian delicacies and birthday cakes?…the new neighborhood grocery stores now gracing Lower Downtown are a dream come true for area residents. After decades of craving a neighborhood market, there are now three: Jody's Market at Writer's Square (1512 Larimer), Lemon Sisters Market (1530 Blake St.) and DeLorenzo's Delicacy Shop (1801 Wynkoop St., Suite 175).
"I met a lot of people who said we need a real grocery store," Jody's co-owner Ron Horoshko recalls. "People asked, 'How can you compete with King Soopers?' I said, "I don't have to." In large cities, there are lots of neighborhood stores where you can get lattes, caviar, or peanut butter. That's what I like about Denver-you can have such an eclectic group of people that you can service." (On-line ordering/delivery available at www.denverdelivery.com).
"We take our suggestion bow very seriously," says Claire Griffin, co-owner of The Lemon Sisters Market. There attention to the customer is paying off. "We have seen a pretty large rise in business since we opened," she says. "In the long run, all of the places that are being built for people to live and the new businesses moving their offices into LoDo are definitely going to help our business." The Lemon Sisters Market offers one-stop shopping for everything from organic produce to light bulbs.
DeLorenzo's Delicacy Shop brings Italian, French and other international items to its shelves. Bart DeLorenzo, owner of both Sevilla's and DeLorenzo's, says, "As the residential continues to grow and new office buildings go up, we are fulfilling the need from breakfast. Lunch and take-home dinners. We are really appreciative and excited about earning the regular business of out existing and new neighbors." (Peruse DeLorenzo's menu and order online at delorenzo's. net.)


Who's Coming, Who's Going?
Galleries: "First and foremost, one of the trends I've observed is the coming and going of the gallery tenants," explains long-time LoDo businessman Charles Woolley, whose firm St. Charles Town Company manages the Hardware Block Building, "I don't know the exact number, but it may have been as high as 30 tenants, and now it is around 20 tenants. Many of those galleries (who left) made a location decision. They went to the Golden Triangle or near other galleries on Broadway or in Cherry Creek. By the same token, we have new galleries, like the Ernest Fuller Fine Art Gallery that recently opened at 15th and Market St., continue to come to LoDo.
Restaurants/Bars: LoDo restaurants are the most stable part of the retail market. Explains Woolley, "There have been changes in operation (Santino's is now Bella's for instance), but the spaces that opened as restaurants have basically remained restaurants. Nightclubs depend on being trendy, so you would expect there to be more turnover."
Traditional Retail: "This is the area where there really hasn't been any diversification until recently. I've seen some bright spots in that area," says Woolley. One of those bright spots is the likelihood of an upscale men's clothing retailer moving into the Hardware Block building. "We are beginning to get a new kind of destination retailer," he explains, adding that the new Hardware Block retail space attracted inquires from fitness studios, galleries, and a women's apparel store. "It is sort of a maturing of the market. You now have Wazee Street, which is pretty wonderful from Cherry Creek to the stadium. Also, stores like REI and Patagonia can work very well here."
Woolley is bullish on LoDo offers to a business is the opportunity to present products that you can't find at the malls. This is the great opportunity of downtown-to differentiate from the market. Home-grown is the opportunity for all of the downtown Denver, and LoDo, in particular, offers that uniqueness."

Glo-o-o-o-rious Union Station!
Thousands turned out once again to experience the Annual Holiday Lighting of Historical Union Station. The honorable Mayor Wellington E. Web had the honor of "throwing the switch" to light up the 20,000 bulbs that drape the exterior's grand fa?§ade. Christmas carols sung by the Last note Singers and the Young Dicken's Carolers from the Colorado Performing Arts Center warmed the hearts of onlookers.
Originally built in 1881, the decorated crown jewel of Lower Downtown brings locals and visitors alike a reminder of how valuable and remarkable Denver's history is to us year-round.

LDDI Retail Committee Enhancing LoDo's Sense of Place
The Retail Committee is a small group of retailers (and others) in Lower Downtown Denver. The group, including Patagonia, A Sense, DeliverDenver.com and Jennifer Tolman (a resident), have united in an effort to bring more exposure and business to retail in LoDo.
The Committee had met several times to discuss ideas for joint advertising. Currently, they are working with both LDDI's Marketing and Urban Design Committees on a promising idea for LoDo retailers.
The idea is to commission local artists to design artistic sculptures and/or signs that would enhance LoDo's "sense of place." One possibility is to design a welcome sign at LoDo entrances, that would confirm visitors have indeed arrived at the oldest, intact historical area in the West. Another idea is to use these pieces of are to point people in the direction of specific retail stores, are galleries, and restaurants. These would be tasteful, creative, and unique ways to say "LoDo" while offering a helping hand to our LoDo visitors.
Says Devany McNeill, Committee Chairperson and owner of Wines Off Wynkoop, "While we are still working on the financing and clearing the idea through the proper channels, I am certain that we can come up with an idea that gains support of the LoDo businesses, and that we will be able to accomplish our goal."