downtown austin retail initiative award project... · only 3 miles from downtown. ... downtown...

Downtown Austin Retail

Initiative

City of Austin

&

Downtown Austin Alliance

History of Downtown Retail

Downtown Austin Retail Initiative

Congress Avenue, 1945

E. 6th Street, 1990

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.

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.

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)

“Develop a critical mass of retail,

with continuity”R/UDAT (2000)

“Focus new retail development

projects to central Downtown”R/UDAT (1992)

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

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

Implementation


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 City-

appointed 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.

Critical to the retail success downtown is the creation of a Retail Program Team.

Business Retention and Enhancement Program


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.

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

Successes


Congress Avenue E. 6th Street

Patagonia and

Jos. A. Bank

2008

Annies Café & Bar

2009

(BRE Loan Recipient)

El Sol y La Luna

2009

(BRE Loan Recipient)

Authenticity Gallery

2006

Alamo Drafthouse Cinema

2007

Evolution / Going Forward


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

As the DAA continues its success at the retail recruitment process, we have fine-tuned the

program and become even more strategic in implementation.

NAICS Codes of Congress Avenue

Ground-Floor Uses

2nd

Street: A Glimpse of the Future


Block 2 - 1997

Block 2 - 2009

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 “2nd Street District” has already

become the template for retail-oriented,

mixed-use development throughout the

city. Block 4 - 2009

downtown austin retail initiative award project... · only 3 miles from downtown. ... downtown...

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