Time for Town Building
Mixed-use projects provide opportunities for retailers and residents.
Bruno Bottarelli

Bottarelli

In the 1940s and ‘50s, it was the traditional downtown village square that drew consumers. From the ‘60s through the ‘90s, the mall reigned supreme. Today, the future of suburban retailing lies in town building and town centers.

Based on an integrated real estate development approach, town building fuses place making, community building and economic development to create compact, mixed-use, walkable pedestrian-friendly town centers that serve the needs of the public while fueling economic growth.

Needless to say, today’s town building projects are a far cry from the village squares and malls most of us grew up with, yet they are vital if we want to address the changing demographics of the suburbs.

After World War II, most towns were zoned to accommodate the explosive housing growth that was occurring. At the time, cities used Euclidian zoning, which required, for example, that schools and housing be removed from industry. Homes were physically separated from schools, shops, workplaces and recreation — forcing people to drive everywhere and to be dependent on automobiles.

This made it difficult to create downtown areas with a blend of uses. Rather than walking the tightrope between zoning and building codes, developers instead built cookie-cutter subdivisions away from major cities. Suburban strip malls then followed to meet the demands of these subdivisions.

But now, people no longer want to live separated from everything. They seek the vibrancy and convenience of an urban, walkable lifestyle provided by the traditional principles of town building. Not only are these developments designed for residents, but they also represent a great opportunity for retailers because town centers have a built-in customer base and draw in shoppers from surrounding areas.

Town Building Today

Today, town building is reshaping antiquated downtowns throughout the country. Cities such as West Palm Beach and Seaside, Florida, and Hercules, California, are utilizing innovative zoning and building codes, much to the advantage of retailers and residents alike.

Because town building is pedestrian-centered, it creates walkable communities that do not rely on cars. This is ideal for people interested in returning to downtown areas, such as empty nesters who want to downsize. The clustering of restaurants, theaters and retail found in town building projects are natural draws to this demographic, as they encourage empty nesters to remain social, yet also enjoy a simpler lifestyle without cars.

A model of the Canal Walk project in Lemont, Illinois.

Younger “echo boomers” also are attracted to suburban town centers. They may work in the suburbs but want to live in a city condo. A town center is the perfect solution as it provides the hip, walkable, urban lifestyle they seek, yet at a lower price point than the city. Suburban town centers also are perceived as safer than comparably priced pioneering urban neighborhoods.

Savvy developers know they need a comfortable setting to attract people to live and shop in their town centers. To achieve this, town building focuses on building and street design. Zoning codes call for things like first-floor retail space; parking located behind buildings rather than in front; and storefronts that face the sidewalk without interruption by parking lots. Buildings can be used for retail and residential use or any combination thereof, but what is most important is how they are designed.

The Lemont Downtown Redevelopment project spans 10 blocks of downtown Lemont, Illinois. It will bring 400 new residences, 750 structured parking spaces, and 150,000 square feet of commercial space to the city.

One of the newest examples of town building is the Lemont Downtown Redevelopment Project in Lemont, Illinois. This $250 million mixed-use project, located 30 miles southwest of Chicago, will comprise 10 city blocks and bring 400 new residences, 750 structured parking spaces and 150,000 square feet of commercial space. It also includes plans to add tourist attractions along the historic I&M Canal.

The Lemont project is one of the first comprehensive town building initiatives in Illinois. Its objective is to be a catalyst for economic development in downtown Lemont, as the village is losing consumer spending and tax revenue to nearby retail centers.

According to Carol Gies, president of 4Insights, a Lisle, Illinois-based retail market analysis firm consulting on the development project, a village center in Lemont will serve as a local option for the 39,000 households within a 5-mile radius of the town. Additionally, the area is expected to gain 3,300 new households by 2011, according to census projections.

Science of Town Building

In Lemont, the retail portion of the development will be designed as a “mall without walls,” where the entire downtown is a composite of inter-related merchants guided by common operating standards similar to enclosed shopping centers.

Obviously, there’s a science to outdoor mall design. Experts who research buying and walking patterns discovered that people will comfortably walk 350 feet maximum from their parked cars, then will turn around. Therefore, the relationship between retail and parking structures is critical.

Rendering of The Front Street Lofts portion of Canal Walk in Lemont, Illinois. The multifamily component comprises 24,000 square feet of first-floor retail space and 82 residences surrounding a 262-car parking structure.

For example, in Lemont, the first retail opportunities are available as part of The Front Street Lofts development. It comprises four five-story buildings with 24,000 square feet of first-floor retail space and 82 residences surrounding a 262-car parking structure.

In accordance with the science of town building, downtown Lemont has been designed with decentralized public parking using a donut-shaped model with a parking structure in the “hole,” i.e., center. The donut design creates the proper flow for pedestrians with special circulation routes and pedestrian paths lined with retail.

By locating retail to the outside of the donut and keeping cars on the inside, storefronts have optimum visibility as they aren’t blocked by cars. If retail windows are hidden, profitability is reduced.

Tenant Melting Pot

According to Kennedy Smith, principal of Washington, D.C.-based The Community Land Use and Economics Group and another consultant to the Lemont Downtown Redevelopment project, a mixed-use development like Lemont provides more stability for retailers than a freestanding shopping center, as residents will serve as a built-in customer base. New retailers also benefit from a core of existing businesses, which will remain and help form the character of the new downtown.

Smith said while Lemont’s new downtown will likely attract a few big-name national retailers, the goal is to draw an eclectic mix of independently owned businesses that will give Lemont its own distinct personality. Ideal retailers for the first-floor space include mom-and-pop-style businesses such as flower shops, boutique clothing stores, coffee and tea shops, a salon/spa, bakery, ice cream shop, restaurants and wine bars. Second-floor retail space is conducive to professional offices like a dentist or small businesses like a brokerage firm.

Tenant placement is another critical element to successful town building. It is important to develop a mix of retail in which restaurants and merchandisers can feed off each other through walk-by traffic. Projects should have designated locations for businesses like restaurants, sidewalk cafés and bar space, as well as other sections that are favorable for offices, banks and other service providers. Developers also should limit spaces to specific tenant types to maintain the proper retail venue mix for the district.

The Lemont development also offers the opportunity for live/work space, which is increasingly in demand. Loft condo space on the second floor can be purchased for commercial use by small-scale industries such as technology, software, consulting and small jewelry companies. Business owners can either reside in the space along with their offices, or they can purchase an adjacent residential condo.

On the Waterfront

A big draw for retailers in town building projects is locations along or near waterways.

Another draw for retailers in town building projects is locations along or near waterways. There is something about a waterway running through an urban center that consumers find very appealing. Being near water is relaxing. Businesses that want to distinguish themselves in the marketplace are drawn to environments that front water, since it acts like a magnet in attracting people.

Within the Lemont Downtown Redevelopment district, much of the prime retail space will front a new project called Canal Walk, the central attraction for the village’s new downtown. The Canal Walk will include a linear park and an 1800s-era barge that will serve as a museum and restaurant. Much of the waterfront commercial space is designated for restaurants and entertainment venues.

Retailer Support

Common operating standards for retailers also support the success of a town building project. For example, retail vendors in the Lemont Downtown Redevelopment district will be encouraged to adapt standards regarding storefront lighting, window displays, signage, advertising and promotional events.

Encouraging retailers to leave their lights on until midnight for window shoppers walking by after dinner allows people to check out a store after hours, while also providing ambient light to the area and the perception of activity.

In addition, the Institute for Community, a national non-profit community building organization, will help build and guide the efforts of the retailers to succeed within the downtown redevelopment district. It will assess and monitor retail activity in downtown Lemont and serve as an informational resource to retailers and local businesses locating to the new downtown.

In sum, town building is once again becoming a competency for developers who are intent on transforming suburban downtowns across the country. As developers continue to perfect the science of building successful mixed-use, compact town centers, retailers will have new choices and fresh opportunities to penetrate new markets while helping to resolve the dysfunction of suburban sprawl development patterns. SCB

Bruno Bottarelli is partner with Chicago-based Marquette Companies, which owns, manages and develops multifamily properties and town building initiatives throughout the country.


©2007 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.