Northwest Arkansas downtowns on the way up

Phases of revitalization vary in big four cities

NWA Democrat-Gazette/JASON IVESTER — Construction continues Feb. 25 on the 210 Towers condominiums in downtown Bentonville. Vibrant downtowns are one way to attract the most sought-after, young employees, said Michael Harvey, Northwest Arkansas Council chief operating officer.
NWA Democrat-Gazette/JASON IVESTER — Construction continues Feb. 25 on the 210 Towers condominiums in downtown Bentonville. Vibrant downtowns are one way to attract the most sought-after, young employees, said Michael Harvey, Northwest Arkansas Council chief operating officer.

Houses in downtown Bentonville have sold for as little as $40 per square foot in the 14 years that Rustin Chrisco has been renovating homes in the city.

Similar houses now sell for as much as $250 per square foot after they are renovated, he said.

"When I first started we were the lone operators," Chrisco said. "I had no clue what would be coming in Bentonville."

Bentonville downtown's housing boom is often used as an example of revitalization. Business growth in Rogers, corporate investment in Springdale and continual expansion of Fayetteville's downtown are also being noted as signs that city centers are improving in the region.

Michael Harvey, Northwest Arkansas Council chief operating officer, said the council supports downtown efforts in the region. Vibrant downtowns are one way to attract the most sought-after, young employees, he said.

"Millennials are concerned with the experience that a place gives them," Harvey said. "The job is still important, but given a certain level of talent, if they can pick and choose the place they are going, they want to share a similar experience with their peers in larger cities."

Cities across the nation are seeing the importance of downtown revitalization, said Michael Smith, chairman of the International Downtown Association and president of Charlotte Center City Partners in North Carolina.

"You want a modern identity, and we all want to attract 22- to 35-year-olds with a college degree, which is tomorrow's workforce," Smith said. "We are in a battle for talent."

A report from the International Downtown Association shows cities with the highest number of jobs in their downtown regions have seen increases in population. Examples include Miami, which increased its downtown population by 90,142 or 33.5 percent between 2000 and 2010, the report states. Downtown Chicago increased by 101,885 people or 45.5 percent during the same time period.

Smith said downtowns give the community an identity.

"It is a place where everybody bumps into each other, where ideas are traded, where you celebrate with each other," Smith said. "We are seeing major employers who moved to the suburbs now moving to downtown. We believe we have entered the urban century, and we are back to valuing urban places."

Daniel Hintz, owner of Velocity Group, has been involved in downtown revitalization in the region. Every city needs an engaged government, civic organizations and community involvement to revitalize a downtown, Hintz said.

Municipal leaders must work on infrastructure and rules and regulations for a downtown region, he said. Civic organizations, including chambers or downtown associations, help promote and draw businesses, he said. The downtown then needs residents willing to invest by starting businesses or purchasing homes, he said.

"If you align all three of those, there is always a risk, but you have a good chance of being successful," he said.

Bentonville

Bentonville Mayor Bob McCaslin said his first effort to help downtown was to keep the area clean.

"People like to be around nice things," McCaslin said.

There was an effort to pick up trash, McCaslin said. Another goal was to improve streets, curbs and street lights, he said.

"We ended up with a pristine model," he said. "The downtown looks like a movie set. A lot of businesses and homeowners followed our example and did the same improvements on their own property."

Amenities also have been developed, he said. The city opened several neighborhood parks, including Lawrence Plaza, which features a splash pad in the summer and skating rink in the winter. The city also connected a vast system of trails to downtown.

Outside investment brought attention to the downtown region, McCaslin said. Crystal Bridges Museum of American Art was opened near downtown in 2011.

Businesses started moving in and home prices have soared in recent years, he said.

"The square has a 100 percent occupancy rate," McCaslin said. "We see real estate selling at two times what [it was selling at] in 2007."

Downtown Bentonville saw very little activity about 20 years ago when Troy Galloway, Bentonville planning director, started with the city, he said.

"There was a bail bondsman, a couple smaller retail stores and a bank, but it was not the place that we know as downtown Bentonville today," he said.

Galloway said it took a committed effort from the community to turn the downtown square around. For early entrepreneurs like Chrisco it wasn't always easy.

"I lost a lot of sleepless nights during the downturn," Chrisco said of the recession that ran from December 2007 to June 2009. "We just stuck to that knowledge that it would come back."

Chrisco said no one was buying homes in downtown Bentonville during the recession. His company, Main Street Builders, was able to buy the houses for very little but he couldn't sell them at the time, he said. Business has since rebounded to be stronger than it was before the recession, he said.

The number of home sales in downtown Bentonville increased by 46.7 percent from 75 in 2012 to 110 in 2013, according to a report from the Northwest Arkansas Council.

The report does not provide home sale data for other cities in the region. Yet, it does provide other data to show positive upticks for housing in the downtowns.

Rogers has seen an increase in the average downtown home price from $45,000 in 2011 to about $77,000 in 2013, the report states. Springdale's "average days on the market" for downtown homes dropped from 185 to 125 days from 2011 to 2012, then increased to 143 days in 2013.

The average sale price for square foot in Fayetteville's downtown increased from $150.96 to $198.o7 between 2011 and 2013, according to the dashboard.

Rogers

Kevin Whaley finished lunch at the newly opened Parkside Public on First Street in Rogers on a chilly day in early March. The entrepreneur was taking a break from running his newly relocated business a few blocks away.

Parkside Public and GPP Cycling & Multisport Shop, Whaley's business, are among several small businesses to open in downtown Rogers in recent months.

The Rogers Chamber of Commerce reports 14 new businesses downtown in 2014. The Northwest Arkansas Council report shows the downtown region increased retail sales by $76 million or 95.1 percent between 2012 and 2013. Consumers spent about $79.9 million in the downtown in 2012 and $155.9 million in 2013.

Fayetteville also saw an increase in retail sales downtown, according to the report. It saw a $54.4 million or 77.48 percent increase from 2010 to 2013. About $70.35 million was spent in 2010 and $124.86 million in 2013. Bentonville and Springdale both saw slight downturns in retail sales, the report states.

Whaley said he decided to move his business to First Street from Walnut in Rogers to get a piece of the momentum starting downtown.

A growing trail system connecting downtown to other areas in the city also was appealing, Whaley said. The city is constructing a bike park and renovating trails at Lake Atalanta, both accessible from downtown.

"It fits well with what our customers are wanting to do," Whaley said of the downtown model. "We are trying to sell you an opportunity to live a healthy lifestyle, and Rogers is working to provide that."

Whaley said the model also fits his family's lifestyle. He said he is looking to sell his home near Beaver Lake and move downtown.

"We prefer to walk down the street and grab a cup of coffee and be a part of the community," Whaley said. "A hundred years ago these streets were active. They will be again. Maybe we will just replace the horses with bikes."

Rogers-Lowell Area Chamber of Commerce President Raymond Burns said the city's decision to undergo a downtown master plan spurred business interest. The city contracted with Gateway Planning in 2013 to create a plan for downtown. The plan is expected to be released to the public this spring.

Burns said revitalization of downtown is positive for the city's economy.

"The downtown is like the front door of any community," Burns said. "If the downtown is well cared for it means you have a progressive community. A downtown boarded up sends the wrong message."

Mayor Greg Hines said the development of downtown affects business throughout the city.

"When new companies or businesses are looking to start up, they do site selection work," Hines said. "We take them out and show them the west side and our industrial parks, but I promise you that before they leave they will visit the downtown. They do that because they want to see what their investment will look like. That happens time and time again by large and small companies."

Springdale

Tyson Foods Inc. announced a $1 million donation to the Downtown Springdale Alliance in late January. It also announced plans to renovate a building on Emma Avenue downtown. The company once owned the building and plans to reopen it as an employment center. Company officials estimate it will bring 25 jobs to downtown.

"My grandfather started Tyson Foods 80 years ago on Emma Avenue," said John Tyson, company chairman, in a January news release. "We're proud of our heritage here. We look forward to the regeneration of downtown Springdale and the positive impact it will have on this great city's economy and its future."

Springdale Mayor Doug Sprouse said the city's downtown was once vibrant with businesses such as Tyson, George's, Jones Truck Line and Harps.

"They all started on Emma," Sprouse said. "To see Tyson, a business that started in downtown come back and have a greater presence down there again is a big deal for Springdale."

Companies like Tyson Foods bring employees who spend money downtown and draw businesses, he said.

"I think we are well on our way, and we are beginning to see those things happen," Sprouse said.

Bill Rogers, Springdale Chamber of Commerce vice president of communications, said development in downtown Springdale is just starting. The planned opening of the Razorback Regional Greenway is another draw to the downtown, Rogers said. The greenway stretches 36-miles from north of Bentonville to south Fayetteville. It will cross through downtown Springdale.

Fayetteville

Fayetteville's downtown has been stable for many years, said Chung Tan, economic development director for the Fayetteville Chamber of Commerce. Yet, there is always room to expand, she said.

The downtown needs to be able to attract and keep University of Arkansas students in the city, Tan said.

"Once they graduate, we need young entrepreneurs to move downtown," Tan said. "We want diversity, something for everybody."

Doug Allen, member of the Dickson Street Merchant Association and owner of Jose's Restaurant and Cantina, said businesses work together in the area to build the community. Festivals are one way business owners do this, said Allen, also director of the city's Springfest.

"They bring a lot of people to the downtown area," Allen said. "They also help the local businesses."

Springfest has been held in downtown since the 1980s, Allen said. Music, arts and crafts along with events such as the bed races are a part of the event, Allen said.

More festivals have started in recent years, including Foam Fest, Bikes, Blues & BBQ and Oktoberfest, Allen said. Each is positive for the downtown region, he said.

Downtowns' Future

Downtown development is an ongoing effort, Smith said.

"If Northwest Arkansas is going to be serious about creating downtown revitalization, you have to have a leader, a board and staff that is doing nothing but this," Smith said. "Study ideas elsewhere and bring them back. You are never complete. New York City, DC and Paris are never complete."

Harvey said this is the regional and local goal. Each city already has or is in the process of developing a plan and hiring staff focused on downtown, he said. Regional discussions will start after all the cities have the building blocks in place, he said.

"I hope to see them mature and take on their own personalities," Harvey said. "I am not a big advocate of doing a cookie cutter plan. They each have their own flavor. Each one of them are going to come at this in a different way. Rogers may have a specific project that they feel is a catalyst. Bentonville may have a different approach."

It is important for each downtown to build upon what they already do best, Harvey said.

"It is all about recruiting talented people to Northwest Arkansas, and I don't think we could be successful as we have been if those downtowns weren't doing what they are doing. We plan to support them as they continue that objective," he said.

NW News on 03/29/2015

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