Is Ann Arbor ready to let the mixed-use movement die in downtown development?
News from Tuesday night's Ann Arbor planning commission meeting contains lots of updates and comments on the proposal for The Varsity, a 13-story high-rise.
One notable detail: There's no ground-floor retail space in the plans for the building.
AnnArbor.com files
It may not seem like an obsession any more, now that the pace of development has slowed.
But there was a time in Ann Arbor when the only type of development project that seemed to get approvals in the city involved elements of multiple uses. Kind of like a development version of a mullet: instead of a business in the front, party in the back hairstyle, Ann Arbor became the "housing above, retail below" town.
It wasn't a concept without merit. We do live in a town where walkability isn't present on some key downtown blocks, and those blocks (think East Washington between Fifth and Division) pay a lack-of-pedestrian price.
And the idea of more housing, more storefronts, more vitality isn't exactly a negative.
But if, as one commenter said, this wave of student housing high-rise proposals can be considered Ann Arbor's newest real estate bubble, we also should be asking: Is it time to remove what seems like "mixed-use at all costs" from development planning?
Mixed-use as a concept is a wonderful thing.
In practice, in Ann Arbor, in projects where's it's been "strongly encouraged," it's not exactly a winner.
One example that comes to mind: Ashley Terrace - which once started as a proposal for an office building until planning commissioners noted that they wanted retail and housing on key corners of downtown. A couple of dozen of those unsold housing units - and the never-leased retail space - just sold out of foreclosure.
There's also Plymouth Green Crossings, where vacant retail space remains and a second building may never be built.
And we'll see how locations like 601 Forest and Zaragon West fare. I hope they end up more like Huron Village, with successful condos north of the shopping center, than Ashley Mews, which waited for years (even during downtown's heyday before The Great Recession) before it could lure a retail tenant to its block of Main Street.
The closest example of mixed-use-before-its-time stands next door to The Varsity: Sterling 411 Lofts on East Washington Street.
That high-rise reportedly has strong apartment occupancy, but the ground-floor retail space languished for years, right across the street from McKinley Towne Centre's retail space at the same intersection.
Both sought to expand foot traffic along East Washington. Both struggled for tenants.
Now, after a price drop, Subway moved into the Sterling property and Sava Lecaj is opening a market this fall. They're taking a risk that many in the city hope pay off.
But the most telling part of the mixed-use tale may come from this detail: Sterling is moving its leasing office to the ground floor, into what The Varsity architect called "un-leasable" retail space.
From our story on The Varsity, here's architect Brad Moore: "In talking to the other landlords and doing the market study, we just felt that this isn't the time for retail on the ground level."
Developers have uttered that sentiment before in Ann Arbor. I'm wondering if this time, after witnessing what can best be described as "mixed" effects of mixed-use, the city will let the market studies that show tepid demand drive the decision instead of the vision.
Comments
Joel Batterman
Thu, Sep 29, 2011 : 9:24 p.m.
Mixed-use development has worked in downtown Ann Arbor for more than 150 years. Even suburban Plymouth Green has attracted tenants including Sweetwaters, Olga's, Subway, InkStop and Umi Sushi. A few empty storefronts notwithstanding, it's not mixed use but draconian single-use zoning that's on its way out.
Epengar
Thu, Sep 22, 2011 : 6:25 p.m.
Have recent mixed-use buildings failed to get retail tenants because there was no demand from potential tenants, or because building owners have unreasonable expectations for rents? Is ground-floor retail space "unleasable" or just "not as lucrative as the landlord thinks it should be"?
Joel Batterman
Thu, Sep 29, 2011 : 9:24 p.m.
Mixed-use development has worked in downtown Ann Arbor for more than 150 years. Even suburban Plymouth Green has attracted tenants including Sweetwaters, Olga's, Subway, InkStop and Umi Sushi. A few empty storefronts notwithstanding, it's not mixed use but draconian single-use zoning that's on its way out.
John Q
Thu, Sep 22, 2011 : 5:08 p.m.
This discussion is so clueless, it makes my head hurt. Quite a bit of downtown is already mixed-use with retail on the ground floor and office and/or residential on the upper floors. Seems to work fine in those buildings. Can you find a couple of examples to the contrary? I'm sure you can. But it's dishonest to point to those examples and act as if they are the rule in town.
Tru2Blu76
Thu, Sep 22, 2011 : 4:43 p.m.
I hate to say it but I think the best approach to this problem (lots of cool buildings but too few customers / tenants) is to use Steve Jobs' "Super Cool" sales approach. I have never subscribed to this method but it obviously works: who needs $400 cell phones or "pads," "pods" or "iAnything"-? Very, very few people actually need these pricey products: but Mr. Jobs is the master salesman - therefore his products sell and are admired, etc. Ann Arbor has to become the Super Cool Downtown. It has to become the City of Your Future. The DDA has got to create shows to tout Ann Arbor like Steve Jobs did with Apple products for years at the MacWorld Conference. They have to find an iconic spokesperson and even host a Developers Conference for real estate developers and landlords around the country - just as Apple has its own software developers conference every year. Ann Arbor has to commit to being leading edge and to start outreaching to people to make them aware that THEY are being Super Cool when the live and shop and run businesses in Super Cool Ann Arbor. Just taking a page from U of M's self-promotion (an incredibly successful campaign) and no longer riding U of M's coattails in self promotion would be a big step forward. Dave Brandon talks about the U of M Brand - it's past time we start talking about the Ann Arbor Brand. Just ask the guys who own Zingerman's enterprises.
Veracity
Thu, Sep 22, 2011 : 4:05 p.m.
Ann Arbor has a glut of available retail rental space which reflects the fact that Ann Arbor is participating in the national recession and that maybe,..... just maybe, Ann Arbor has all the retail stores that it needs. If the retail rental business were doing well then high rises like the Zaragon and the Varsity would have retail space pre-leased and would not be including the space "on speculation" as is being done now.
LindaE
Thu, Sep 22, 2011 : 2:42 p.m.
I really think we need to look to European cities where people come out of their apartment buildings and walk to the nearby (always just around every corner) fruit and vegetable store or meat store or bread store, to pick up items they need that day. Livable cities are walkable cities and have something to walk to !! We need more small store opportunities, so small businesses can be started.
EyeHeartA2
Thu, Sep 22, 2011 : 1:43 p.m.
Mixed use makes more sense downtown than out at the fringes of civilization, like Plymouth Green.
Gordon
Thu, Sep 22, 2011 : 1:03 p.m.
I suspect a decent grocery store in downtown A2 would fail from the start. Given taxes, cost of square feet, and difficulty of getting around A2 the store would fail. Detroit has tried several times to have a decent grocery store run by people who know their business well in places with tenants and they have failed. Maybe an on-line retailer with a store could fill the spot. People could buy on-line & pick up their merchandise at the store? Or the store could sell their discounted merchandise in the store. Doesn't sound like mixed use is working. Seems to be a committee form of "what we want" and not a business / demand acitivity
Andrew Selinger
Thu, Sep 22, 2011 : 2:11 a.m.
Paula, My hope and expectation is that nobody on planning commission or DDA is so short-sighted as to call mixed-use in this city a failure. The projects that you name, unfortunately, were poorly planned and executed. Ashley Terrace is perhaps the worst designed street-level, corner retail in Ann Arbor, and it is isolated by several large surface lots and office buildings. Plymouth Green Crossing is ill-conceived as well: they are essentially trying to sell "luxury lofts" on top of a strip center on a suburban feeder road. Finally, I don't think anybody could honestly call 411 a high-traffic (pedestrian, that is) retail location, even though it is now 100% leased. To let The Varsity claim that mixed-use is a mistake would be to permanently isolate 411, rather than begin to develop a critical mass of retail that creates a destination, such as what has been done at State & Liberty, and Main. If any changes should be made, perhaps it may be worth the city's time to refine and articulate the points that make mixed-use successful.
whatsupwithMI
Thu, Sep 22, 2011 : 2 a.m.
Q:Should retail space be a part of The Varsity's development plans? ?? A: Only if the city is satisfied that it won't work. ?? Retail space should only be included if the city is sure it _won't_ work?? This was placed to get the inattentive vote? or the sarcastic vote?
sellers
Wed, Sep 21, 2011 : 10:58 p.m.
I think development plans are great. It helps set vision and create a goal for the future. We must remember, however, exceptions exist for a reason, and will always need to be entertained.
hut hut
Wed, Sep 21, 2011 : 10:24 p.m.
Mixed use is a failed attempt to make a multi purpose "neighborhood" in a single building. It's also an out for developers when their plans to rent to a certain segment (residential, business etc) go south. Zoning can't do this, only people can decide what they need and where it's located. Anything else is doomed to fail.
Vivienne Armentrout
Wed, Sep 21, 2011 : 9:27 p.m.
Good question. Maybe there should be some overlay districts to indicate where that would be desirable or where it was not so important. Surely truly "downtown" streets should have opportunities for pedestrian interaction rather than blank walls. They dropped the requirement for "active" uses, didn't they?
Veracity
Thu, Sep 22, 2011 : 3:52 p.m.
What type of "opportunities for pedestrian interaction" do you believe will be successful? Are you talking about a Starbuck's or Sweetwaters?
John A2
Wed, Sep 21, 2011 : 9:26 p.m.
We need a real grocery store downtown for the down town locals.Something that's not high priced goods, and not another coffee shop.
Tom Joad
Wed, Sep 21, 2011 : 8:06 p.m.
America is in desperate straits currently because demand for goods is plummeting. Businesses aren't hiring because the market for their goods is not there. Housing is an absolute necessity, but shops selling trinkets, not so much. With a proliferation of $1000/month bedrooms (you share the common space) will eventually cause that sector to languish as well. Now is not the time to be developing pricey student apartments.
say it plain
Wed, Sep 21, 2011 : 11:33 p.m.
But it's apparently the *only* (very) profitable stuff to build right now, because the $1000/month bedrooms aren't subject to the same market forces as any other sort of housing--it's paid for with the 'pretend' money of college loans. Or with the 'earned' money of well-to-do parents who expect that this is what college costs these days. The only way I see these units 'languishing' is if indeed they build more than is required to house UM students. Are the numbers approaching that yet? One would think the finance geniuses at the banks and investment firms would at least ask about that when they finance projects, but we've seen how they operate in the past, so....