Downtowns trying to stage comeback
By J. PHILIP BLOOMER
News-Gazette Staff Writer

   The vibrancy of our downtowns took a beating in the 1970s and 1980s as the glitz of newness and indoor shopping tugged our automobiles out to the pastures and cornfields of yesteryear.
   Amid the empty storefronts of depopulated downtowns, small-business folks floundered. Some downtown business districts tried to emulate their suburban counterparts. Some still flounder.
   City officials still wring their hands in frustration. But in spots, new life has emerged. In fits and starts, both the hardy and the foolhardy have risked their capital on the bet that some people have tired of Wall Street-driven shopping, eating and drinking.
   That kind of initiative is paying dividends in downtown Champaign.
   Experts say there is a definite pattern in the renewal of downtowns across the country. The cycle typically begins with the growth of entertainment and nightlife, to the re-establishment of retail stores, to the redevelopment of residential space.
   "It's often two steps forward and one step back, but it's obvious Champaign has come a long way," said Leonard Heumann, an urban planning professor and member of Champaign's Plan Commission. "The night life has made a huge difference and, with a few more pieces in place, I think you'll see the other sectors develop as well."
   The low point for the Champaign downtown can be easily pinpointed to 1980. Property values had been steadily declining through the 1970s until the city established a tax increment financing district in 1980. Property value in the tax-increment financing district that makes up most of downtown Champaign has risen from $7.6 million in 1980 to $13.5 million. It's projected to hit $17 million by the end of the district in 2004.
   The city has used income from the district for a variety of physical improvements and incentive programs for investors.
   The city has spent some $2.5 million so far streetscaping 20 blocks with new sidewalks, ornamental streetlighting, new trees, parking, small plazas, planters and other amenities.
   The streetscaping will continue this spring and will include work on the north side of Main Street, on Taylor Street between Market and Walnut streets, and on part of Market.
   The story is the same in the East University Avenue tax-increment district. That district was begun in 1985 with property values at $5.6 million. Values have jumped to $9.1 million.
   Tax-increment money will also be used this year for extensive streetscaping along North First Street, the Chester Street business district and along University Avenue from the overpass to Fourth Street.
   Not all of the streetscape work may get completed this year.
   "There aren't enough men in this town to do what I want done," said Karen Stonehouse, a city planner directing much of the work.
   Also this spring, the nightlife will get additional boosts from the planned openings of more restaurants and bars, largely along the Neil Street corridor.
   Stonehouse is especially enthusiastic about efforts along North First Street. Two parties are working on restaurant/bars. There's retail interest plus at least one party interested in what she described as a multimedia business.
   On other fronts, the city has applied to the Illinois Department of Transportation for grant money to take over some former railroad right of way downtown and clean up the areas around the overpasses.
   In Urbana, officials are planning on renewing their focus on downtown after last year fighting off attempts to move the county courthouse. Lincoln Square is maintaining, with new management that took over last year.
   The city is now in the process of hiring a downtown consultant.
   "It's certainly time to revisit the question of long-term planning for downtown," said Gerrit Knaap, a University of Illinois urban planning professor and member of Urbana's plan commission. "I wasn't real thrilled with the way the Schnuck's development turned out. There's a lot more we can do, including new design requirements."
   A persistent problem cited by investors as well as city officials involves how to make frequently empty upper stories of downtown buildings usable. Investors say they're repelled from renovation by building codes that require elevators or other changes that are financially prohibitive.
   "I don't think anyone wants to compromise safety, but there are ways to get some of this space into more productive use," said Heumann, of Champaign.
   Among the possibilities he mentioned are creating a special zoning district for special renting populations in downtown. For example, if you're only renting to people without disabilities or children, a requirement for a second exit or elevator from an upper-story apartment may not be necessary.
   Stonehouse said that in the coming months, she plans to focus again on efforts to ease the ability of building owners to renovate upper-story space for apartments.
   There is precedent, Stonehouse said, for applying different codes in special districts. Another alternative is trying to direct more city grant money to that effort.
   "Planning-wise, we haven't focused enough attention on that and hope to in the coming year."
   Garry Bowman, the city's building safety supervisor, said he believes the problems of meeting elevator code requirements are sometimes overstated, or not often understood.
   The need for second-story elevators in existing buildings is determined by a formula that requires elevators if remodeling costs exceed 50 percent of the replacement cost of the building.
   "But people don't understand that there are a lot of remodeling costs that aren't figured into the formula," Bowman said. "I keep hearing this complaint, and it's frustrating because I don't think this requirement is detrimental to downtown development.
   "I can honestly say that I cannot think of a time when we've required a retroactive installation of an elevator in an existing building."
   In any case, grant assistance is available through the city's Redevelopment Incentive Program that has already provided help to 45 renovation projects.
   "For people who want to renovate, this is the time to do it," Stonehouse said. "We go up to $100,000. The program before this went up to only $10,000. It's a lot better than what most cities are doing."
   The money comes from the tax-increment financing district, which expires in 2004. Stonehouse said she hopes another source of money can be found to continue the program after that.
   The program pays up to 20 percent, or a maximum of $100,000, of the cost of permanent improvements on a building project.
   Stonehouse said the program has been extremely successful in inspiring renovation of older buildings that have been vacant because of the high cost of code improvements.
   Major renovation projects now under way include the old Dallenbach buildings in the first block of North Neil Street, which are being converted to top-end office and retail space. Across the street, the Thorstenson Sokolski Group is turning the old Buttitta building at 211 N. Neil St. into a nightclub plus four second-floor apartments.
   The Virginia Theatre renovations are under way to return that theater to a full-time, full-use showpiece under the management of the Champaign Park District.
   The Great Impasta restaurant is renovating the old Glenn Poor's Audio-Video, 114 W. Church St., to give the restaurant three times the space it has now, with a bar, outdoor seating area and a banquet room.
   Two parties have been negotiating to buy the old Jitters & Rush building, 2 E. Main St., one for a brew club and the other for an upscale wine bar.
   Several parties have inquired about buying the old Gallery building for a nightclub or restaurant, but, again, investors have been scared off by the expectation they would have to install an elevator.
   "What I consider the core of downtown has a lot of momentum now," Stonehouse said. "We need to keep that going and work on strengthening the areas outside the core."

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