Challenges of downtown Zionsville
Change is a natural part of life, but are the changes on Main Street a sign of trouble ahead?
With destination retailers like Lilly’s Boutique and Village Clock Shop being replaced by offices and salons in recent months, some are concerned, such as 25-year business owner Lee Peters.
“The Clock Shop moved out and a realtor moved in. We’ve gotta have retail destinations,” Peters said. “Moving from retail to commercial affects the vitality of the brick street.”
As a business owner, Peters is well aware of the challenges, one of the most significant being increased property taxes. Since 2006, taxes for his 3,000-square-foot office space have more than quadrupled, causing a burden almost impossible to bear without affecting his tenants and rent.
“I cannot capture back in my rent the increase in property taxes.” Peters said. “Tenants are maxed out, and I can’t raise the rent.”
Bob and Delores Bender, owners of Bender Square and longtime residents of Zionsville, echo the concerns about rising property taxes and diversity of businesses on Main Street.
“Since we took over most of the commercial property in Bender Square in 2001, our taxes have tripled, but we haven’t tripled our rent,” Delores said.
As owners of the building which houses Lilly’s Boutique, which soon will be closing, they are wondering what will arrive in its place.
“We have had several calls but nothing yet to report. It is actually two spaces but has always been rented as one,” Delores said. “I hope it’s going to be retail that will draw people. We are trying to get someone who will enhance the merchants who are already there and will be good for the village.”
This is a difficult balance for building owners, many who have absorbed rising costs in order to keep rents reasonable for tenants to succeed. Zionsville resident Tammy Kelly, who specializes in commercial real estate with RE/MAX Ability Plus and is also a member of the Economic Development Commission, has unique insight into the challenges.
“The problem is that because they are independently owned, everybody does their own thing. The rents vary from $12 to $18 per square foot, even spaces two doors down from each other.” Kelly said. “Owners want credit-worthy tenants, but they may not be the best mix for the village as a whole.”
According to Kelly, discussions have been on-going for at least 10 years. Now the EDC is actively seeking concrete solutions, possibly involving updates to zoning ordinances.
When asked whether there were restrictions in the current zoning ordinances for the Village business district pertaining to the ratio of retail to service related businesses, chains versus independent stores or mandates on consistent hours of operation, the answer was the same.
“None that are enforceable or regulated by the Town,” Wayne DeLong, director of Planning and Economic Development for the Town of Zionsville, said.
Before any updates to the zoning ordinances take place, data is needed.
“The Economic Development Commission is reviewing the concept of studying the current business mix within the Village in combination with a parking analysis and subsequent update to the Town’s development ordinances that pertain to the Village as a result of the findings of such a study (all recommended actions of the 2012 Economic Development Strategic Plan),” DeLong said.
This study is anticipated to be facilitated by the EDC with assistance from the Town and Chamber, likely funded by the EDC with the cost yet to be identified. The study would engage the stakeholders in the Village which includes, but is not limited to, the Town, the Chamber, merchants, residents, building owners, non-profits, civic organizations, service organizations and other interested parties.
Julie Johns-Cole, executive director of the Zionsville Chamber of Commerce, is a part of these discussions and the Chamber has already taken action by recently forming the Downtown Committee with its top priority of “collaboration and communication among merchants.”
“Downtown has been changing and evolving for years. People have had concerns but overall occupancy rates are high,” Cole said. “Many downtown areas have issues and those being proactive will be better off.”
(see related story, “Learning from our neighbors” under Community/Business tab)
