Wednesday, March 14, 2007
What’s wrong with downtown Half Moon Bay?
High rents and a lack of tourists are taking their toll on Half Moon Bay’s Main Street, reports Julia Scott in the County Times. Businesses catering to locals are barely hanging on or have just left downtown—and those catering to tourists are facing relentless pressure.
“We’re hitting rock bottom here. We’re going to lose a lot of businesses,” said Nidia Nelson, owner of Nuestra Tierra, a Mexican Gallery on Half Moon Bay’s Main Street.
Nelson is one of several local merchants in prime locations along Main Street that normally benefit from gift shoppers out for a stroll on weekends as they search for jewelry, fine art or antiques. But merchants say the foot traffic isn’t there anymore, and many never recovered from the 20 percent slump they endured over Christmas. Then there are shop owners like Nelson, who are facing rent increases just as they near the desperation point.
Nelson opened Nuestra Tierra six years ago and has since spent $20,000 on capital improvements. Her rent, $3.25 per square foot, is the most expensive in town, and the landlord raises it every year. He told her that if she can’t pay it, others can, according to Nelson.
“And we won’t be able to pay it,” she said.
Twelve retailers closed their doors last year in Half Moon Bay and more chains—Popeye’s, Jamba Juice, and Peet’s—are moving in. Chamber of Commerce CEO Charise McHugh is quoted blaming Coastsiders for not shopping locally. Locally-oriented merchants blame a plague of galleries for raising rents. The impact of the closure of Devil’s Slide is still debated. And everyone seems to be unhappy with their landlord.
“The chamber is doing the best we can to get the word out,” said McHugh. “We don’t have the power to tell people what kinds of shops they should open or tell landlords not to raise the rent.
The debate over the direction of Half Moon Bay’s downtown continues, but there seems to be no agreement on what the problem is, or whether there is even a problem. The big retail chains understand that downtown is the next frontier. I visited Union Square this week for the first time in a couple of years, and it’s now more like Stanford Shopping Center with crosswalks than the shopping district of a world-class city.
Comments
Okay, I’m going to say it, and I’m not trying to be controversial here: the problem is that there have been many shops going in that locals are not interested shopping at, nor could they afford the fashionable clothing or craftsy home interior products for sale.
Then, the type of tourists who visit HMB are not looking to buy the type of clothing, nor the collectibles for their home, from these shops. They wander after eating, they enjoy strolling Main Street, but are they really there to buy stuff they could easily find over the hill back home?
Restaurants do well, as, it seems do the bookstores (what are there, like, four bookshops within walking distance?).
Prices are a bit crazy in the cafés and bakeries. I paid $4.00 for an Odwalla at Moonside last weekend. Ouch.
Popeye’s coming into the scene doesn’t make sense in town that sought signatures for a Trader Joe’s. Peet’s I can understand. If it were a Starbucks coming, I’d woefully shake my head and mutter, “There goes the neighborhood.” Did the Trader Joe’s petition get enough signatures? I lost touch with that issue.
In summary, I’ll mention what happened to Laguna Beach where I grew up in the 70s. Amidst a food co-op, old fashioned drugstores, surf shops, and a natural foods stand, were many galleries, which weren’t necessarily a problem. The galleries attracted a certain type of tourist. It’s when a coastal town begins to have frozen yogurt and t-shirt shops that you know the town is really in trouble. That’s the sign that the local color has definitely departed. That’s what happened to Laguna in the 80s and it was never the same since.
Hopefully the downtown of HMB won’t gentrify itself to accomodate a deeper pocket tourist. More local color please. Is it easy for creative, local, small businesses to secure an accomodating lease in a downtown space? Maybe that’s the problem, property owners set the lease too high. Like, as is the case with the chai shop getting booted out. Anyone who has ever drank a sip of that chai would know that that is too special a treat to let go away.
Sorry to write so much.
It’s encouraging to see such a strong response to this issue. As a co-author of the 2005 survey, I’d like to restate some of the data from that survey. It brought out that 72% of the responding store owners had to take out loans, dip into savings, take a second job, or rely on their spouse having an income, in order to keep their doors open.
Also consider the following:
While 82% claimed that HMB was a great place to do business.
48% declared that they’d been struggling for the last three years.
38% wondered if HMB provided the right climate for business, & 20% were considering selling their business.
(hardly a model of success)
When Madeleine Sausotte and I tried to encourage the Downtown Merchants Association (composed primarily of art galleries and gift shop owners), plus the Chamber to get on board with the survey, our suggestions were largely ignored. Except for two individuals who put in a few hours, we received NO support. We drafted, funded, distributed, collected, and tabulated the survey, almost entirely on our own.
When it looked like the results were then too problematic to ignore, the meeting we planned to hold with the City, concerned business owners, and representatives of the DMA and the Chamber was co-opted and castrated, ultimately becoming mired in procedural formality. We should not have been surprised. The composition of the DMA was only partly what its name suggested. At least a third of its meetings were regularly attended by real estate, banking, and business management interests. Maybe we should be asking ourselves who is really benefitting from this scenario?
I liken Downtown to an expensive chocolate mousse, and when the check finally comes, we realize we never got the entree. All we were left with was the illusion that we had a good meal.
Yet every time these issues comes up, residents seem to be uniformly livid about having to trudge over the hill every time they need to buy something as trivial as underwear. The business owners on Main Street seem locked into this myopic mindset that precludes them from having to take the desires of their strongest market into consideration. It’s like, “I always had this dream, that’s why I’m here in business”, regardless of whether there was ever a strong enough market to support it. So, stubbornly, rather than evolve to meet changing market demands, they stagnate and complain about why the locals don’t support them everytime their beloved tourist wind stalls or the slide happens to go out. Ultimately, this myopia, while helping to support the illusion of prosperity here, only serves to downgrade the quality of life for the rest of us who live here.
As a business owner on Main Street, and having openly expressed the need to support locals first, I did not see any drop in business when the Slide went down. NONE! Personally, I hate wasting gas and time, therefore, anything I can do to help anyone else do the same will continue to be part of my business philosophy.
Unfortunately, once that fragile confidence of the residents is broken, and those residents develop alternate purchasing patterns, it takes a lot of time, effort, and heart-ache for some, as that locale struggles to dig itself out of the dysfunctional hole it is in.
Rather than continue to “blame” the current state of Downtown’s economy on the the fact that the locals don’t shop there as they had in the past, our local business moguls, who seem to still be admiring their handywork, should take a long hard look at the model they’ve embraced. These ‘powers that be’ should, to some degree, be held accountable for failing to recognize the changing patterns of the buying public that would have supported the very businesses thay have been claiming to represent.
There are a couple of businesses on either side of the spectrum, which have stepped up to the plate. Ocean Shore (its “Housewares” section, which appears to be doing well), and then there’s Jeans Plus. I don’t know how many of you have checked Jeans Plus out, but the owner has been very willing to bring in items that locals want and he’s looking for feedback. His prices are pretty good, but he’s stuck in this ‘Black Hole of Calcutta’ over there in the corner of Strawflower, where the sidewalks seem to have been designed more as a pedestrian obstacle. He’s there because he had been advised NOT to locate on Main Street, and where else can a business owner locate around here?
When I brought up the issue of businesses that have had a rough time getting their ball rolling to one of our better known business network organizations, and mentioned doing a series of instructional write-ups so that other business owners could learn from the mistakes, my suggestion was summarily dismissed because it was not the policy to profile businesses that weren’t members. So much for the community.
I’m sorry, but in case these people have been living in a cave, there is a community that lives here, one that has a tremendous amount of discretionary income that it is willing to selectively part with. Where they choose to spent it rests in large part on whether anyone at the helm Downtown is paying attention to the weather.
Okay, I’m going to say it, and I’m not trying to be controversial here: the problem is that there have been many shops going in that locals are not interested shopping at, nor could they afford the fashionable clothing or craftsy home interior products for sale.
Then, the type of tourists who visit HMB are not looking to buy the type of clothing, nor the collectibles for their home, from these shops. They wander after eating, they enjoy strolling Main Street, but are they really there to buy stuff they could easily find over the hill back home?
Restaurants do well, as, it seems do the bookstores (what are there, like, four bookshops within walking distance?).
Prices are a bit crazy in the cafés and bakeries. I paid $4.00 for an Odwalla at Moonside last weekend. Ouch.
Popeye’s coming into the scene doesn’t make sense in town that sought signatures for a Trader Joe’s. Peet’s I can understand. If it were a Starbucks coming, I’d woefully shake my head and mutter, “There goes the neighborhood.” Did the Trader Joe’s petition get enough signatures? I lost touch with that issue.
In summary, I’ll mention what happened to Laguna Beach where I grew up in the 70s. Amidst a food co-op, old fashioned drugstores, surf shops, and a natural foods stand, were many galleries, which weren’t necessarily a problem. The galleries attracted a certain type of tourist. It’s when a coastal town begins to have frozen yogurt and t-shirt shops that you know the town is really in trouble. That’s the sign that the local color has definitely departed. That’s what happened to Laguna in the 80s and it was never the same since.
Hopefully the downtown of HMB won’t gentrify itself to accomodate a deeper pocket tourist. More local color please. Is it easy for creative, local, small businesses to secure an accomodating lease in a downtown space? Maybe that’s the problem, property owners set the lease too high. Like, as is the case with the chai shop getting booted out. Anyone who has ever drank a sip of that chai would know that that is too special a treat to let go away.
Sorry to write so much.