Downtown Austin Retail Initiative. City of Austin & Downtown Austin Alliance
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1 Downtown Austin Retail Initiative City of Austin & Downtown Austin Alliance
2 History of Downtown Retail In 1960 downtown Austin was the retail district serving the city s residential neighborhoods and surrounding communities. There were over 100 stores on Congress Avenue alone. The mid-1960s saw the development of Austin s first shopping centers outside downtown. The 1970s saw the development of several suburban malls. Congress Avenue, 1945 In 1981 the 1million + sq. ft. Barton Creek Mall opened only 3 miles from downtown. That same year the last downtown department store closed. A few local independents hung on through the 1990s. By 2001 fewer than a dozen retailers, including museum gift shops and a souvenir shop remained. E. 6 th Street, 1990
3 Early Studies Multiple studies between 1991 and 2000 found an unmet demand for retail in downtown Austin and called for a market analysis and retail strategy. Downtown Austin is in desperate need of a stronger retail base R/UDAT (1991) Focus new retail development projects to central Downtown R/UDAT (1992) Develop a critical mass of retail, with continuity R/UDAT (2000)
4 Downtown Austin Retail Market Strategy In 2003 the City of Austin and the Downtown Austin Alliance commissioned a consultant study to analyze the demand for retail in downtown, and develop a strategy to capture it. The report, completed in 2004, won an IDA award. The strategy comprises five components: Infrastructure Inventory Retail Inventory Retail Demand Analysis Market Strategy Barriers to Entry
5 Detailed Strategies The City of Austin and DAA then commissioned two detailed retail strategies for the two highest priority streets. Congress Avenue (2005) recommended: Upper Half: Officer worker-oriented retail, cultural uses, and a few service businesses Lower Half: Men s and Women s Apparel Fashion Accessories Cosmetics/Bath Products Home Furnishings Athletic Wear and Sporting Goods Electronic/Computer Store Stationery/Gifts/Music Art Galleries Specialty/Prepared Foods E. 6th Street (2006) recommended: Cultural and Entertainment: Live jazz, blues, country, folk, bluegrass music venues Screening room for Austin Film Society Independent movie house Radio station sound stage Cross categories/uses (i.e. music and bowling) Food and Restaurant Related: Coffee shops Corner deli Sidewalk cafes Traditional diner Barbeque and ribs restaurant Soft Goods: Eclectic video/music rental and for-sale Boutique vintage stores Galleries (i.e. concert posters) Weekend markets Bookstore/newsstand Florist Card and small gifts shop
6 Implementation Critical to the retail success downtown is the creation of a Retail Program Team. The team consists of: Retail recruiter works to recruit local and regional retailers focusing on Texas markets as well as Los Angeles, Nashville and New Orleans. Consultant works with national retailers, and assists downtown property owners. DAA Associate Director works with a Cityappointed team and the DAA s Communications Director to market success. The team has: Called on over 700 retailers in four years and qualified over 200 as prospects. Developed a database of prospective retailers and building lease information. Met with every property owner one-on-one to sell the retail vision. Provided educational forums for both property owners and downtown retailers.
7 Business Retention and Enhancement Program To complement and support the effort of the Retail Program Team, the City of Austin created the Business Retention and Enhancement (BRE) Program. BRE Program Area The program provides City of Austin low-interest loans for eligible costs to businesses located in or moving to Congress Avenue and E. 6th Street. The goals of the program are to: improve the image of Congress Avenue and East 6th Street as destinations for the community, visitors and tourists enhance East 6th Street s live music and entertainment district stimulate private retail investment within the area improve the quantity and quality of goods and services available within the Eligible Area create and retain jobs. Loans are not to exceed $250,000. Funding provided by one-time development fees collected in the Fee Area. Eligible costs include tenant finish-out improvements, acquisition of machinery and equipment necessary for the operation of the business, and certain building façade improvements. Preference is given to Locally-Owned Businesses and Minority- Owned Business or Women-Owned Business Enterprises. Available only for selected types of commercial uses, consistent with the Congress Avenue and E. 6th Street merchandising plans.
8 Successes Congress Avenue E. 6 th Street Authenticity Gallery 2006 Alamo Drafthouse Cinema 2007 Patagonia and Jos. A. Bank 2008 Annies Café & Bar 2009 (BRE Loan Recipient) El Sol y La Luna 2009 (BRE Loan Recipient)
9 Evolution / Going Forward As the DAA continues its success at the retail recruitment process, we have fine-tuned the program and become even more strategic in implementation. GIS mapping all first floor retail spaces and NAICS coding, for long-term tracking. Expanding role into education and collaboration. Co-sponsor and collaborate on educational seminars, lead generation and provide a supportive environment to retailers downtown, partnering with: The City of Austin s Small Business Development Program The Austin Convention & Visitors Bureau The Austin Independent Business Alliance NAICS Codes of Congress Avenue Ground-Floor Uses
10 2 nd Street: A Glimpse of the Future Block Block In 1997 the City of Austin began the redevelopment of a mostly City-owned, derelict 6-block area in the southwest quadrant of downtown. Nearly 2 years from completion in 2011, the 2 nd Street District has already become the template for retail-oriented, mixed-use development throughout the city. Block
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