Seeking a Grand Formula for 'Main Street' Success

Officially, it is known as East Grand Avenue in District 16 in the city of St. Paul, Minnesota. However, to the residents of the Summit Hill neighborhood, Grand Avenue is much more than an address. Known as "the gem of the city," it is a pedestrian-friendly "Main Street" that is loved by the community for its rich, eclectic mixture of local retailers and its historic, charming character.

Over the past few years, however, some of that character has been chipped away, bit by bit, as more and more formula businesses have moved into the area and as numerous independent retailers have shut their doors. Worried about Grand Avenue's future, approximately three years ago, the Summit Hill Neighborhood Association (SHNA) began compiling a plan that plots out a course to preserve the neighborhood's character and charm and to protect it for the future.

On Wednesday, February 15, SHNA's hard work paid off -- at least in part -- when the St. Paul City Council approved the association's neighborhood plan, which included restrictions that limit the size of new buildings on Grand Avenue to 25,000 square feet or less and to a height of no more than three stories. "We needed to have a plan in place to keep the biggest and the worst [formula businesses] out," said Michele Cromer-Poire of The Red Balloon bookstore, who is a member of SHNA. "[District 16] has a lot of well-educated ... people who care about their neighborhood."

In recent years, Grand Avenue in St. Paul has seen a significant influx of chains: Smith & Hawken, Restoration Hardware, Pottery Barn, Blockbuster Video, J. Crew, and Starbucks have opened new stores -- a trend that began several years earlier with the openings of a Pier I Imports and Walgreens Pharmacy. However, when the street's last independent drugstore recently closed, and a CVS opened, it "opened everybody's eyes [to the issue]," Cromer-Poire said.

Members of SHNA are concerned that chains ultimately "bid up rents," and they worry that "locally owned stores will continue to lose their foothold as rents increase and chains multiply. [Many residents] prefer locally owned businesses that are more likely to invest in the neighborhood's future and be actively involved in civic and cultural organizations and events." In addition, chains will erode Grand Avenue's unique appeal and weaken the community fabric, SHNA stressed in its neighborhood plan.

"[Grand Avenue] is a charming street," Cromer-Poire said. "But what made it charming is the independent retailers on the street. Developers who own property here are bringing in chains."

To help stem the tide of chains coming to the street, SHNA's "Summit Hill/District 16 Neighborhood Plan" limits the size of new buildings to a footprint of 25,000 square feet or less; limits total size above ground to 75,000 square feet or less, including parking; and limits new building height to three stories. It also "recommends implementing mechanisms for supporting and retaining small, locally owned businesses."

However, while the plan's size limit will likely keep some chain stores out, SHNA is seeking a more substantial formula business ordinance, Cromer-Poire told BTW. She served on SHNA's ad hoc committee, which was created, in part, to draw up the formula business ordinance.

The purpose of the ordinance isn't to keep all chains out, but to create the proper synergy between formula businesses and independent businesses on Grand Avenue, while promoting the health of locally owned businesses. And, of course, to maintain the street's unique charm, according to SHNA.

Drawing on data gleaned from The Institute for Local Self-Reliance, SHNA's formula business ordinance seeks to limit the number of formula businesses allowed at any given time on Grand Avenue in District 16 and would further lower the size cap on new buildings, among other things.

At the February 15 meeting, the St. Paul City Council said it would not adopt any formula business ordinance until after completing a study regarding the various methods and mechanisms available that will encourage locally owned businesses, as reported by Minnesota Public Radio. In the meantime, the city council passed a moratorium on new construction on East Grand Avenue until November, Cromer-Poire reported. --David Grogan