Western Avenue gridlock

Stuck in traffic for a good 20 minutes on that half-mile stretch of Western Avenue between Sheridan and the new I-40, I made a mental note to myself to revisit a post that I made a while ago. Western is routinely gridlocked during this half-mile stretch, and I myself was surprised that the new I-40 project's completion has actually finally given OKC the "big league city" rush hour that we all craved. Ok, or not..

However I think that this is an opportunity, not a problem (although trying a different synchronization pattern with the lights along Western may be a good idea to ease traffic circulation). It's an opportunity because these kinds of traffic counts don't exist anywhere else downtown, and even though Western is definitely the blighted back entrance to downtown, at least with this kind of bumper-to-bumper congestion and the corridor's newfound prominence, that lends a majority opportunity for the Market Circle proposal to take advantage of.

I happen to believe (call me crazy) that development should follow traffic counts, rather than try to magically manufacture them. Western must be redeveloped, the gridlocked rush hour traffic that only exists here is screaming for it. Imagine the exposure that a business would get if somebody is stuck sitting in their car for 5 minutes just in front of that business alone. Then gets to crawl up another hundred yards after a few lights turn green, and gets stuck for another 5 minutes staring at a different business. I think this is the kind of traffic that could actually make downtown destination retail (ie., another subject we've talked to death on here and around town) very viable, although as far as that goes I am still bullish on North Broadway and the A-Alley area, especially if they can get a public parking solution.

Here's the photo from NewsOK that shows you what Western becomes every single weekday between 4:30 and 6.

I think at a certain point, you have to stop basing your planning on how you understood downtown in 1990. Downtown has changed and evolved since then; downtown is dynamic. The new reality in 2012 is this. Take advantage of that new reality.

What could have been...

This is a rendering I came across on Butzer Gardner's website. I wonder if this has anything to do with Bob Howard and Fred Hall's plans to redevelop the old Bob Howard Downtown Ford. Nonetheless, it's very intriguing, and I have a hunch that plopping the convention center on what would have been prime retail land doesn't bode well. Just a guess though...

The game of downtown retail

I did a very, very bad thing. I sent an email many months ago to Alison Oshel, who is the wonderful Director of Community Redevelopment at the Greater OKC Chamber and did not read that she got back with me until just now. This is an especially egregious accident on my part, considering that I wrote a pretty negative appraisal of the job she is doing. She responded, basically informing me of what she does, as if she needs to. I then apologized and asked her if I could ask a few questions, which I'd put up as an "interview" on here. It probably looks like I ignored her and disrespected her, but sometimes you lose track of emails, and I feel very bad about this.

But here is the interview, and you can compare/contrast this with a rather negative post that I wrote back in 2009.

Q: How does the Chamber, or you specifically, go about recruiting retail for OKC?
A: We provide market research and site analysis. The research is assembled into marketing materials that are disseminated to our area brokers and developers for use in their recruitment efforts. We provide site analysis as needed and we update our market research continually. I have attached some samples of the marketing materials we compiled this year.

Q: What are some specific examples of this process at work?
A: We target retailers not yet in our market and meet with them. We have met with Whole Foods, COSTCO, REI, California Pizza Kitchen, Urban Outfitters, Anthropologie, Paper Source, Free People and at least a dozen others and most have indicated an initial interest in our market after we were able to demonstrate to them that OKC is a large market with high disposable income. Several of these prospects have been here for multiple site visits and at least two have requested site analyses for locations that they have zeroed in on. I believe we will see 1 or 2 of those listed above in our market within 18-24 months. We have NOT met with Nordstrom’s because they notoriously expect a giant public incentive (I heard in one case $40 million!) to come to any new market.

Q: What kind of efforts are made at conventions and on the road to meet with retailers?
A: We lease space at the International Council of Shopping Centers (ICSC) convention and build a booth with meeting rooms and a reception area. We offer our meeting rooms and brochure racks to any OKC broker or developer to use during the convention. This is the largest outlay of cash from our retail program but, in the good years, more than 55,000 retailers and developers attend this convention so it is a must for anyone trying to promote retail. Because space at the show is expensive, some of our area brokers/developers are extremely appreciative of having the ability to host their meetings in our space. This is not a trade show—it is a place to have meetings and to make deals. Both Jane Jenkins and Jim Cowan were our guests at this convention this past April.

Q: Every area of the metro, except downtown, was recently in store for a lifestyle center (most of these are now stalled)--how does downtown compete, and what is the plan for making downtown stand on its own as a feasible retail market?
A: We target national retail developers who have downtown development experience. We have met with a number of these firms to talk with them about and invite them to consider developing in Core to Shore. There are opportunities which exist in Core to Shore for concentrated retail which do not exist anywhere else in downtown. We have hosted site visits for a number of national developers. I am hosting a group from Atlanta today and tomorrow, in fact.

It’s not, by any stretch, an easy game and the fruits of our efforts which began in 2007 are just now starting to yield results. Whole Foods, and other retailers like them, already had their 2010 store openings announced when we first met with them in 2007—so if we don’t get a Whole Foods in 2010, it shouldn’t surprise anyone. But if we do get a Whole Foods in 2010, I believe the Chamber’s retail program can claim some credit. The Chamber lays the groundwork with our marketing materials and research to help “make the sale” but we must have good retail shopping centers to offer retail prospects so our development and brokerage community is tasked with “closing the deal”. So, I guess I’m saying it takes a village and, thankfully, we do all seem to be working in concert.

Lastly, retail is the hardest type of real estate development to get financed right now so as much as you may not like hearing it, the national economy has slowed or stopped much of the progress that was being made. A number of the developments that you mentioned are back to the drawing board, changing their mix of retail, housing, office and hotel space in order to get their projects financed. I am hopeful that the strong will survive and we will see some quality developments when the cloud lifts.

/end response
________________________________________

I think that is very interesting, and extremely true, that you can have the best retail development task force in the world, and if you don't have any decent developments for retailers to lease space in, you won't get the retailers. I think since this email, some of those retail development goals HAVE been met with success. We now have Whole Foods, Anthropologie, and an outlet mall--major kudos to Ms. Oshel.

I think the answer to this dilemma is obvious. We need more space, and if downtown had desirable retail space, Oshel, Jane Jenkins, and others, would work hard to get it filled with great tenants. But all of these very-capable professionals can't make banks loosen financing, and can't make developers come up with resources to put into a project featuring downtown retail. And it won't happen until there is a large, desirable, contiguous development for retail to go in--one storefront here and there won't do it, these prestigious retailers like to locate together.

OKC Business newspaper agrees, as the subtitle on an article from yesterday reads: "Despite interest from national high-end retailers, until a suitable lifestyle center is built, they won’t come"

Full Circle?

Just wanted to keep my badgering of Full Circle fresh, but actually, wanted to say one last thing since I am about to finally change the poll.

What will happen to Full Circle? I see three options. Stay in 50 Penn. Move north (Classen Curve). Move south (inner city/downtown). Well, I suppose there are two other cardinal directions they could move, but I'll go ahead and claim ESP by saying I have secret information that Full Circle will not locate in Bethany...no offense to Bethany.

Who knows what they will do. They all seem to be an equal shot, meaning 1/3 likelihood of staying in 50 Penn, which is not very likely, and same for moving to Classen Curve, or moving downtown. There are reasons for each. But 50 Penn ownership was recently transferred to another out of state owner. More and more of the retail court is becoming vacant. All that's left in 50 Penn now is Full Circle and Belle Isle Brewery.

50 Penn is an otherwise strong property, fully-leased for the office tower. But its days as a retail destination are truly over, despite that Full Circle has invested a lot in the location which has truly become more charming as its aged. Is the charming bookstore vibe important to them? If so, obviously an old building downtown will be better for recreating that than a new Rand Elliott-designed building in Nichols Hills.

It makes sense to move. They're in a losing situation by sticking it out in 50 Penn. Moving could be an absolutely monumental opportunity if they chose downtown, specially, Midtown or A-Alley, some of the north-downtown neighborhoods with proximity to Heritage Hills. This is somewhere that Full Circle could really thrive, and also be a catalyst for a complimentary retail mix that was far more symbiotic than 50 Penn was even in its heyday.

So what will happen? Stay? Go? Go Classen, or go downtown? Who knows. I would really hope to see them go downtown. I just think that could really create a special bookstore. There are so many great old buildings that would be awesome for Full Circle. We talk so much about how badly we want downtown retail to happen and be locally-driven at the same time. Full Circle would be a proper anchor (read: not like Bass Pro) that downtown could grow up around. Moving downtown is a move that would provide for a long, and interesting future for Full Circle. Moving further north to the newest suburban thing?

Q&A with Chris Holliday: Coffee Talk

For those who don't know, there's a new coffee shop opening downtown. Elemental Coffee is located in the 800 block of N. Hudson in a former mechanic shop. It's actually a really cool concept. One of the proprietors, Chris Holliday, is a real coffee guru who knows his stuff. I like the blocky white look of the outside, and I understand the interior will have an interesting ambiance. Architect of Record is none other than Hans Butzer, so you know it will be very sharp.

Here's the Q&A:

1) I understand that coffee is not your day job..As a coffee buff, what was it about coffee that got you involved in trying to fill the void of it here in OKC?
I'm a natural born foodie. My life seems to revolve around eating and I really like to push my taste experiences in different directions. Coffee is both enigmatic and elegant and while we grow up knowing there is a difference between all the grocery store bags, we never really learn what makes coffees different and we are really shielded from the range of coffee's flavors. I started experimenting and researching and it simply became my hobby.

2) I read in an article that you buy 1 coffee out of every 90 that you and your business partners test--so it seems safe to say you're pretty selective and brew very high-quality coffee. What can people expect in terms of pricing?
Our retail prices range from $12.50 to $32.00 for a 12 ounce bag. This is pretty average in specialty coffee. We will probably start to offer more higher end coffees but we will introduce them slowly. Our drinks will be priced based on the coffee we use for brewing but generally inline with other specialty coffee companies.

3) My personal philosophy on coffee is that it's all about the environment, the price of a cup of coffee includes the coffee shop that you are enjoying. What type of environment for the coffee shop will you be creating?
Elemental will be a coffee and conversation place. We aim to present a sophisticated ambiance with an approachable atmosphere. There will be no doubt that we are dedicated in our approach to coffee but we also hope to make everyone feel welcomed regardless of whether they share our sentiment. Educating people about coffee can't be forced. But even the most dispassionate consumer can distinguish between horrifically prepared grocery store robusta and freshly roasted arabica that makes a clean and balanced lovingly crafted by-the-cup brew.

4) Until the coffee shop fully opens in April, how do you view the operation until then?
It will basically be a construction zone with a garage door in the alley on the South side that will be open in the early mornings as a stand up coffee bar.

5) What made you settle on Hudson Avenue, rather than some of the more notable activity hubs throughout the downtown region?
2/3's of the Elemental owners live in the Heritage Hills/Mesta Park area. MidTown is a proven and growing part of OKC.

6) What will be made of the warehouse you currently utilize on West Main? I know this is kind of off-topic and that Main is an industrial area, but how do you feel about the potential of the West Main Historic District (particularly between Western and Indiana)?
Our current location will go up for rent as soon as we vacate it. I think that part of town is still a few years away from becoming a fully utilized activity center.

7) What are some of the current local businesses that serve up Elemental Coffee?
Cuppies and Joe, Beatnix, Cafe Evoke, Forward Foods, The Wedge, Deep Fork, La Baguette and a whole host of other great shops.

8) Have you settled on a name yet for the coffee shop?
We are going to simply call it Elemental Coffee.

9) Downtown has seen some hit and misses when it comes to coffee shops. Obviously Coffee Slingers has been a success, whereas the Buzz has had landlord issues, which eventually led to the demise of Uncommon Grounds, and then BrewHaHa was just unsuccessful sadly, and so on. How do you view the opportunity for the coffee business in downtown?
I think quality served up with passion will always be successful. We have thousands of great customers all over the metro area and this is a testament for the thirst that exists in this region to be served quality products. We are going to push the quality envelop to the edge and see where it takes us.

10) One notable thing about OKC's inner city is a relative lack of Starbucks infiltration. At the surface that's always a good thing, but perhaps a stronger presence would raise coffee awareness in the city? Why are there so few good coffee shops in this city? Is that good for business?
Until recently there hasn't really been what I would call a "good" coffee shop. My assessment is that cafe operators have bought into the concept of competing with the large chain coffee shops and be content to clean up their leftovers. I believe that this short sells the consumer in this area and leaves a huge gap for those willing to deliver truly great coffees.

Upheaval in local grocery options

It looks like with Whole Foods coming to town, there is an upheaval underway already with the local grocery scene. Consider the number of local organic grocers within 1 mile of where Whole Foods ended up breaking ground. It looks like some of them may want to move downtown after all (especially after Crescent Market has been adamantly opposed to moving downtown for years until suddenly). And so now what we're seeing is downtown finally appearing as a viable retail alternative to the Chesapeake area...as long as your niche is going to be cannibalized by Whole Foods. And to be clear, this isn't saying Crescent Market, Forward Foods, or any other gourmet and organic grocers to name a few couldn't compete with Whole Foods which is often actually a benefit to the local gourmet and organic grocery options. Local options typically compete quite well against Whole Foods and Whole Foods brings more attention to the whole idea of gourmet and organic grocery shopping in cities it goes to. My belief is that Whole Foods may have gotten an agreement with Chesapeake that they'll raise the rent on Crescent Market and encourage them to leave the area, which is exactly what they're doing.

Crescent Market appears to be looking at areas with good access to Mesta Park and Heritage Hills, wanting to stay true to its base demographic. This means looking around Walker and around Broadway. Automobile Alley appears to be getting serious consideration, but the problem with A-Alley I see is that the current Crescent Market is well over 20,000 sf. Even if they utilize a more efficient floorplan I still don't see them downsizing their operations, meaning they'll need at least 10,000 sf on a ground floor in a well-renovated building, which may be hard to come by. Two other gourmet grocers that I won't name are also looking at downtown very seriously, and I understand there is a very strong possibility that the LEVEL Urban Apartments at 2nd/Walnut will sign a lease with an existing locally-known grocer that might not necessarily relocate a store but open a new one. Or it might relocate the store.


Is it possible that Chesapeake-area retailers moving downtown could stem the tide of movement further north? For the last 2-3 years it seems like the only option for retailers leaving 50 Penn Place or others coming to town was to go into the Classen Curve development, whereas they all could have very easily and successfully gone downtown. Full Circle, looking right at you..it's time to move downtown and get out of your building. Can anyone else imagine Crescent Market, other grocers, Full Circle, Hideaway, Shop Good, Rawhide, and others all in the same neighborhood? That would go many miles toward establishing the critical mass needed in terms of downtown retail to turn the tide and get the ball rolling.

On a sadder note, it appears that this Friday is the last day for Market C on NW 23rd. A great Uptown 23rd tenant for a long time, that added a lot to the really interesting and diverse mix that has blossomed there, it is a shame that it is going away. It will be replaced with more space for Cheever's catering.