East Texas Business

By MALENA OGLES
Staff Writer

The city is on its way to having a new presence in downtown Tyler, but it's not the only new occupant setting up shop along red brick streets.

Last week the City of Tyler began preliminary work new Main Street Department headquarters at 110 W. Erwin St.

Officials say the best way to encourage development in the downtown is to lead by example.

"In order to develop a downtown successfully, you need the public sector and the private sector," Main Street Department director Beverly Abell said.

The city is remodeling the building into office space, a downtown visitors' center and an arts center that features local artists. Its hope is for the 3,330-square-foot building to be complete and ready for move in by the end of April.

Tyler's Main Street program, the signature project of Heart of Tyler Inc., became a city department in October after council members approved a public/private partnership agreement with the nonprofit organization. The city later approved a 10-year lease/purchase agreement on the building to house the Main Street program offices and the visitors' and arts centers on the downtown square.

Ms. Abell said the second visitors' center will not compete with the Chamber of Commerce, and will focus primarily on the downtown area, while the main center will continue to provide information for the entire city and outlying region.

"The creation of the arts center is all part of the Tyler 21 plan to make the downtown a hub for arts and culture," she said.

"We are setting that tone and setting an example by having a gallery as part of the headquarters. It will also be creation of an arts coalition to program that area."

Tying in with becoming an arts and culture center is the city's agreement with the East Texas Symphony Orchestra to turn the 5,000-square-foot Liberty Theater into a recital and performance hall that will seat 300 people.

In addition to the land on Erwin Street, the city will also use its purchase of the former King Chevrolet and White's Ford dealerships to upgrade the downtown area. The plan is to put office spaces and public parking to create a western downtown square.

"All of those things are the pubic sector investment spurring private investment. We do these things and the intention is to demonstrate that is safer and more attractive for private investors," City of Tyler Public Relations Director Susan Guthrie said. "We're walking the talk. It (the Main Street Department building) gives us a real legitimate presence within the heart of downtown."

City officials say one of the key components to creating economic vitality in downtown bringing living spaces to the area.

"Look at any major city's downtown area and you will see it is attractive because residents make it a 24-hour downtown," Ms. Abell said.

With more people living in the downtown, the city hopes businesses that cater to downtown residents will follow.

One of the first entrepreneurs to bring the residential market into downtown was John O'Sullivan of Tyler. In the early 1990s, O'Sullivan and his wife purchased a row of buildings downtown, with a plan to keep the downstairs as commercial and lease the upstairs as residential.

"People enjoy living downtown. It's a certain niche market, but the properties we have seem to stay rented 100 percent of the time," he said.

Even with the addition of more residential lofts, O'Sullivan said he thinks there will be enough renters to go around.

"A lot of our residents are young professionals that don't necessarily work downtown. We have a pretty good variety of people," he said.

O'Sullivan grew up Tyler when there were no malls and the downtown was the central business district. When he returned from college he found businesses springing up all over south Tyler near the newly built mall and a dying downtown.

"I think we're past the decline of the downtown area," he said. "The city and county will remain anchors along with the banking; it's going to keep us healthy downtown."

While he doesn't expect the retail industry to return, he expects more specialty stores, and businesses to call downtown their home.

Paul Fitch, with The Landmark Group, said he hopes that people who work downtown will want to live downtown.

Developers are putting the final touches on the Moore Grocery Lofts -- an 88-apartment complex.

The lofts are an approved tax credit by the Texas Department of Housing and Community Affairs. Unlike "Section 8" or public housing, the TDHCA grants tax credits to projects that will house tenants who pay their own rent.

The apartments will be income-restricted to individuals or families earning at or below 60 percent of the area median income based on family size.

According last year's figures, residents would have to earn between approximately $20,000 and approximately $35,000 to qualify to live in the new complex.

From 1918 to 1956, the building at 408 N. Broadway Ave. housed Moore Grocery Co., which distributed groceries wholesale throughout East Texas. In 1956 it became Dennard Supply, a wholesale food service equipment and rental company.

The five-story brick building was the only Chicago-style structure in the city and for many years was the largest commercial building in town. It is now listed on Historic Tyler's roster of properties.

If they're living downtown town, maybe they will eat downtown, hopes David and Jeenie Weaver, who are opening their 14th Subway restaurant this February.

"We wanted to be part of the redevelopment and growth of downtown and felt like the opportunity was now," Weaver said.

A little different from other subway restaurants, Weaver is working with the Heart of Tyler to ensure the 1,500-square-foot building on West Erwin Street doesn't lose its historical look while keeping in compliance with the Subway franchise requirements.

"We're trying the best we can to make it fit in with the historic feel of downtown Tyler," he said.

Weaver said he believes slower evening limited serving hours has kept restaurant franchises from moving to downtown Tyler.

"The downtown has a nice customer base for lunchtime sales, but a traditional restaurant requires lunch and dinner traffic," he said.

To succeed in downtown, Weaver said his Subway will focus primarily on a breakfast and lunch menu with limited hours.

"If we were building our first (Subway) in Tyler we may not take that risk, but when you have as many stores as we have, you are in a better position to try new things," he said. "We've been anxiously awaiting the right opportunity to be part of the business district here."

For history lover Vic Taylor and his wife Christy, owning property downtown means more than renting property -- it's about preserving history.

"One trend we're starting to see is a lot of younger people wanting to move downtown. We knew it would be an ideal location for a rental," Taylor said.

Four years ago the couple purchased property at 105 Spring St.; the bottom level houses La Tee Da Flowers and the upper level was converted into a loft.

"We like the history. The downtown is so unique. That's one of those things you can't buy," he said.

When they purchased the property it was in disarray and needed serious work. After tearing out the old plaster walls, replacing the original hardwood floors and devoting countless hours to the building, the property qualified as a top three finalist in the Texas Downtown Association's best commercial interior awards category in 2008.

Their current tenants, La Tee Da Flowers, moved from California and wanted their business in a historical building, Taylor said.

"I think a lot of people are starting to feel a little more nostalgic for American history. (Downtown) is a prime location for real estate," he said.

DOWNTOWN ON THE GO: Loft apartments have been steadily going in above stores all around the square, including those on Spring Avenue east of the Smith County Courthouse.
(Staff Photo By Jaime R. Carrero)