Town works to improve Franklin Street business climate

With just five percent of downtown business buildings unoccupied, town officials are saying Franklin Street is on the rise.

Business owners, both new and old, agree the town is taking steps toward improving the business climate by addressing issues like parking, but that many issues are left to be tackled.

“It’s difficult to attract new businesses to take the risk here under this economy,” said Cheryle Jernigan-Wicker, co-owner of Toots & Magoo at 142 E. Franklin St. “We opened our store hoping that our shop would encourage others like us.”

Jernigan-Wicker, who opened the retail store in May 2008, said Toots & Magoo has run into problems resulting from the economic downturn.

“Rent for the business is disproportionately high,” she said. “Sales are going down, but the rent has stayed the same. Maybe new businesses can’t afford the rent.”

But Dwight Bassett, the town’s economic development officer, said the economy hasn’t been as big of a hindrance as some may think.

“Considering that we had a downturn at the beginning of 2008, and considering that downtown has gained in occupancy level during that time period, I think Chapel Hill is doing excellent,” Bassett said.

Barbara Rich, the gallery director for FRANK, the art collective, cited parking as a constant problem in the downtown area but said the situation is improving.

“You can find parking,” Rich said. “It’s not always the most convenient place, but most cities’ parking isn’t convenient.”

Jim Norton, executive director of the Chapel Hill Downtown Partnership, said valet parking was instated June 1 on East and West Franklin streets and is available Monday through Saturday.

“You don’t even have to find a place,” Norton said. “You drop your car off, and they’ll park it for you.”

Ryan Hill, owner of the Clothing Warehouse located next door to FRANK, said while parking has not been an issue for his store, attracting shoppers has.

“I don’t think there are too many barriers other than just getting people in here,” Hill said. “A lot of people just walk in here and say, ‘Oh, I walk by this store every day and I’ve never even seen it.’”

Norton said the town and University are working together to bring about development opportunities through projects like 123 West Franklin, currently known as University Square.

And although some residents are clamoring for retail diversity in the form of businesses like grocery stores, Bassett said the downtown area just can’t support projects like that right now.

“It would take several thousand new residential units to support even a small grocery store in downtown Chapel Hill,” Bassett said.

“We just don’t have that kind of market yet. We are not there.”

And until the town gets there, Rich said business leaders are trying to give people a reason to go downtown — a reason other than Franklin Street being a part of the University.

“You have to provide something the demographics need that they don’t already have,” she said.

“You have to know how you’re going to stay in business.”

Contact the City Editor at citydesk@unc.edu.