[cover story]

Revitalizing the Riverfront:

Downtown execs have big plans

By: Shea Carver

Like Woody Allen has stated: “There are two kinds of people: good and bad. The good sleep better, but the bad seem to enjoy the waking hours much more.” If I had to choose, I’d be the latter. Much like if I had to choose between being two types of Wilmingtonians—beachies or downtownies—I’d also be the latter. After all, it’s the nightlife of Front Street that keeps my pockets perpetually empty.

However, beachies and downtownies do meet in the middle, and not only for midtown shopping at chain magnates Best Buy or Old Navy. We as a whole don’t wish for a poor quality of life on either side of town. Thus, we always defend our choices, our preferences, our likes and dislikes, to help others see what we see. In this case we strive to answer: What’s great about Wilmington?

There’s a divide of assumption that runs rampant with each answer to the question. Beachies, who adore the laid-back coastal life, may assume downtownies, who adore city life, have a string of criminality about them. Outside of stabbing our own souls with ice picks, we certainly aren’t awaiting to pounce on the next BMW for a few bucks. We aren’t looking to induce harm on anyone—just as beachies probably aren’t intentionally trying to send others into insanity from constantly blaring Jimmy Buffett tunes from their Sting Ray’s speakers. To be fair to both, the depth to which such stereotypes are confounded is often, well, unfounded.

Since we covered beach life last week in encore—and how its culture supercedes more than surf and sand—this week we turn the wheel toward Front Street, where I tracked down John Hinnant, executive director of Wilmington Downtown, to put to bed a few presuppositions about our historic district. Hinnant explores our greater cityscape, bringing to light the growth of our area and how it will affect us all. Downtown is as much a part of Wilmington to be cherished and frequented as the Atlantic Ocean and Intracoastal Waterway. When it comes down to it, we’re all a part of Wilmington’s greater ideal: to live happily in our environs. Beachies, downtownies—it’s all the same, really. What we share is common ground, from sand to cobblestone streets alike. Some of us just listen to better music, that’s all.

e: What is the most overstated assumption you hear folks give downtown Wilmington, and how should it be corrected?
JH: Two things: The first is crime. Downtown is a virtual Mayberry from 4am to 10pm. The violent crime that does occur is directly related to our successful nightlife. Unless you hear about the random acts of violence like what happened to that 95-year-old lady, you are unlikely to be a victim of crime because you visit downtown.

Downtown—ior what I call downtown, 8th Street to the river—is very safe. Often the media reports “assault downtown,” and when you check the address, it’s somewhere like 12th and Hanover (just an example). The newspaper used to do a real good job of identifying the neighborhood, but when the headline bleeds “downtown,” people think that their lives are in danger at the corner of Front and Princess.

Number Two incorrect assumption: Parking. Downtown parking has improved dramatically over the past couple years. The problem we have is that people have a few mental obstacles to get over. First is that parking is not free. To park your car anywhere is a matter of managing real estate. When you park “for free” at the mall, you are agreeing that with your purchase, the store, the mall manager, the owner and developer are going to manage, re-pave and secure that facility parking lot. There is a hidden cost associated with the shopping experience that covers the cost of the parking lot.

Second, because downtown is so densely developed, our parking has to be structured. Our community has not “grown up” with the urban parking practices. We are beginning to get it, especially with the new deck at 2nd and Market. We get a lot of usage out of that deck, and the nighttime traffic is tremendous.

e: Speaking of parking decks and crime: I have known a few friends to be assaulted in the Market and 2nd street parking deck at night. Are security precautions being taken?

JH: We have roving security guards in the deck at Market and 2nd. That was an amendment to the contract for our parking enforcement contract. Security was a huge concern among customers when surveyed about parking in downtown.

e: What are the top three priorities on your agenda right now?
JH: We are forming a steering committee that will do a feasibility study on Wilmington Downtown becoming a Business Improvement District (BID). Back in the late ‘80s and ‘90s, these were referred to as MSDs or Municipal Service Districts. Essentially what happens is you draw a line around an area/neighborhood/business district, and you set a little higher of a tax rate. In return the property and business owners receive a higher level of service—an enhanced service, if you will.

Take security, for example: If the property owners suggest that safety is an issue, you identify what type of service they would like to see more of. Then you develop a budget, and ask each property owner if they would mind paying 2 or 3 cents more on their property taxes in exchange for that enhanced service. This would free up the police to do police work. Our downtown daytime police beat is constantly doing community relations, homeless intercepts and regular old vagabond issues. These BID security officers would be like ambassadors to downtown and our city. They view the community outreach as something they enjoy and a responsibility.

The BID in downtown Greensboro concentrates on clean and green initiatives. The Raleigh BID has an ambassador/security program. Some areas use BID revenue to develop parking. It all depends on the property owners and how they respond to the survey.

We also have a downtown parks task force, which is leading the effort to develop a signature park in downtown that we can be proud of for generations. We hope to make some news regarding that initiative in the next couple of months.

We are completely re-tooling our Web site . . . that blows [away] anything else you’ve ever seen. Every business in downtown will be listed for free. We will provide a higher level of service for a nominal fee (links to Web site, menu downloads, etc.), and that information will be available when we launch in late July. It will also incorporate area attractions, lodging, services (professional and government), shopping, dining, nightlife, etcetera. When or if you want to come downtown, this site will be the one you visit.

e: Give me an idea of the scale of growth downtown has seen over the past five years.

JH: In the last six years—I gave you six because we had a little moratorium blip last year that delayed investment—we have had over $250 million in private-sector investment. By contrast, the previous 25 years only saw $250 million in private-sector investment.

e: What was the blip—anything of dire concern that citizens should know about?

JH: No, the blip was that the moratorium prevented much investment because we couldn’t get the building permits issued. So, instead we only had interest payments being made on proposed projects. The sewer moratorium that was imposed after the Northeast Interceptor disaster. Nothing to be concerned about; the city and county officials and elected people all say the problems have been fixed.

e: Are you seeing any specific trends you feel are adding to the overall economical growth and success of our downtown area?
JH: I think people are really beginning to look at the quality of life issues that downtown offers (particularly when locating a place for their business). We find people are more and more frustrated with the traffic issues, and employers see downtown as having a positive impact on the “quality of life” for their employees.

When you have to drive through the traffic to work, to lunch and home afterward, downtown offers a nice alternative. You can park your car in the morning and leave it until you go home. Our downtown employees enjoy walking to lunch and walking around for exercise. I constantly overhear downtown employees on the street chatting with each other that they enjoy being able to walk everywhere. Downtown is one of the only pedestrian-friendly environments around.

Because downtown was developed in a nice grid pattern, the traffic is very manageable. Also, the recent road improvements of MLK and the Northern Outer Loop have really connected downtown to other regional housing stock. People can easily get here from Hampstead, Porter’s Neck, Gordon Road, etcetera.

e: How is Wilmington Downtown working toward bringing new jobs to the area? I would say this is something of grave interest right now with our current economic situation...
JH: Good question. We have been working on several initiatives, and we see this as a multi-faceted approach. One, we are supporting the convention center and as an organization, we are very concerned about the hotel that is developed adjacent. Both facilities need to be done on time and with a superior level of quality and class. As a community we cannot accept a lower-standard hotel, which is what the last developer tried to push on us.

We work closely with Wilmington Industrial Development (committee of 100) to help attract employers to downtown. We also work with building owners, realtors and developers to try and identify good tenants for the spaces they offer. We also work on events and marketing. Our Friday night concert series, Downtown Sundown, is a good example of how the workers in the downtown area benefit by being downtown. They can stay after work to relax and enjoy free live music before hitting the town for dinner, or anything else.

It is also a great event to showcase to prospective employers. They view these types of events as appealing to the workforce that they will employ. They know that there is plenty of cultural arts opportunity in the new town where they will live and work.

e: For folks still on the fence about the convention center, how would you convince them that this is not only a good idea, but a well-needed investment?
JH: It is a well-needed investment; we cannot count on tourism dollars alone, and the convention center will bring needed business during the “shoulder season.” For us layman folks, that is early spring and late fall. The investment is also paid for through hotel-room tax, so it really doesn’t come from the property taxes that we pay. The typical conventioneer has a multiplier effect that shows about how much money they spend when visiting another town for a convention. These dollars go to restaurants, retailers, gift shops, bars, entertainment, taxis, etcetera.

When you consider our center, keep in mind the competitive advantage we have. We are a 10-15 minute ride to some of the most beautiful beaches around, the site is riverfront on the water, and part of North Carolina’s largest historic district. Who wouldn’t want to visit here?

I was in a meeting with Albert Eby, the director of WAVE transit. He commented that every other year for the past several years, Wilmington has been host to the North Carolina mass transit organization. This year they all complimented about the improvements we have made. It’s hard for us to recognize because we see it every day, but the quality of life is exceptional here, and we need to take more pride in who we are and what we have. We have taken for granted a couple of the greatest assets we have: the Cape Fear River and the historic character of our downtown.

e: What has been the hardest obstacle to overcome in your reign as executive director?
JH: Playing the role of private/public partner with the job of facilitating a role between the public and private sector would be the hardest obstacle. Right now, the city is considering a re-vamp of the Central Business District regulations. As an economic development organization, we have to facilitate and assist economic development. If a developer views the regulatory environment as trying to take away their development rights, we have to choose if we want to fight or advocate, or find a middle ground. When dealing with the city and the private developers, seldom will you find a common or middle ground.

On a personal note, I struggle with a regulation that wants to protect historic integrity. If you really want to preserve old historic buildings, then you have to offer incentives. I think we should offer a significant tax break to those who spend 75 percent or more of the tax value to up-fit and restore a historic building. Something like a 10-20 percent discount on property taxes for a period of 10 years would really have an impact on the bottom line. Setting an arbitrarily low height regulation as a means to protect the historical integrity of adjacent buildings is counter to building the tax base. By setting a limit of buildings to 60 feet on Front Street, you are significantly limiting the potential tax base for that area.

My point is: Incentives should be offered for historic preservation—not regulated.

e: Are there any new prospects you can share with us that should excite locals about downtown’s expansion?
JH: I do have an exciting prospect, but I can’t disclose any information right now. Downtown is in the running against three or four suburban locations for a national tenant that would be very exciting to our area.

We have had some chatter from a couple of grocery-store operators about doing a real full-service grocery store in downtown. Hopefully, we can get something going on that soon.

We are courting two sushi concepts, one that features live music and another that is one of the hottest chefs in the Tennessee Valley. Both bring chainlet experience and would be a complement to our downtown scene.

e: How do you feel about chains infiltrating downtown? Should our mom-and-pops be worried about it driving out their business? The whole You’ve Got Mail concept....

jh: No, I think it improves competition. When I was in business, I had to compete with a Blimpie, Jersey Mike’s and a Roly Poly. It only made me want to do more and “guerrilla market” my business. I was extremely competitive and wanted to do better than them.

I have to believe that it is also caused by the success of mom-and-pop. Harper’s place has been in business, what, 20 years? The brewery has been around 12? Caffé Phoenix, Deluxe, Pilot House, Elijah’s, Paddy’s Hollow, New Liverpool, the list keeps going. These guys have been successful and everybody wants to know why—and then they give it a try.

I believe that competition breeds success, so I think it helps. They know they have to step it up. They also have the loyal following of their staff and customers.

e: Do you think downtown will suffer from other newer developments taking over our area, a la Mayfaire, The Forum, Autumn Hall?

JH: Those other developments will certainly have an impact on downtown’s ability to compete. We have to remain optimistic, positive, young, hip and professional. Retail is always going to have ups and downs. The mall has struggled with filling its stores. Mayfaire, in its short life, has had some turnover. Autumn Hall will have similar struggles with the retail component as well.

The key for us is to continue working with the “new-age mom-and-pop-type retailer.” We now have a skate and surf shop and a surf and skate shop downtown. Each focuses more on one than the other, hence the reason the names are backward. They have both reported good apparel sales since opening. Sunglasses and flip flops are selling well, too. This is a good place for apparel retailers.

A lot of tourists come downtown after being sunburned at the beach. It is highly unlikely they are going to window shop at the beach, but will enjoy the historic district and see opportunities to buy apparel. Plus, when I was in business, I remember tourists telling me they liked our downtown because it didn’t feel like they were in a tourist trap. Visitors can shop downtown and feel like a local.

The key for our retailers is to do a better job of capitalizing on the downtown traffic we have now and attract more local customers. That’s why we do the concert series: to attract people downtown. If they have a great experience, they know they can come down without plans and find something to do or buy. The traffic we have now is important; so many people thought PPD’s 1,700 employees would be this great catalyst. Don’t get me wrong, they have had an impact—especially on North 4th and Castle streets. Our Front Street restaurants are reporting good business as well.

Cape Fear Community College brings 5 to 6,000 people downtown a day. With the average program lasting only two years, you have a 50-percent turnover every year. I want to develop a CFCC appreciation week or month of programming for November. If we can build loyal customers there (all local), they will come back more frequently and spend more money.

We also need to continue a faster, balanced development approach. We have had some residential development in the past few years, but it represents only a drop in the bucket compared to what we need. With the exception of PPD, we have not seen any office development in the past few years. The Wachovia Building at 3rd and Grace has taken a long time to lease and hurts the development prospects for another office building. The new Bank of America building has broken ground and we are all pushing the lease space (approximately 30,000 square feet) as hard as we can. The faster we can lease that space, the better our chances are at getting another office building soon. That is one area that people don’t always realize. We compete with Mayfaire and Autumn Hall for office tenants as well as retailers. The office users are typically your weekday daytime customer in downtown. It gets back to that pedestrian thing again.