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Linsay Butler,
Tribune - March 21, 2007
Sales tax receipts in
downtown Scottsdale are rising almost as quickly as the hotel,
condominium and retail development in the area.
The five districts of downtown collected an extra $64.5 million
in 2006, and one area on Main Street saw an increase of nearly
40 percent in gross revenue, according to newly released city
tax records for 2006. Gross revenue, or revenue prior to taxes,
for the entire downtown area increased about 18 percent compared
to 2005.
City leaders say the upswing is fueled by new projects such as
the
W Hotel, new stores at Scottsdale Fashion Square and the
Waterfront, and a collective effort by art galleries to
reach the public.
“Every month is better than the next,” said John Little,
downtown director. “This is not an anomaly or unusual spike.
This is every sector, every district. That adds up to a trend.”
The downtown districts are divided into Fifth Avenue, Marshall
Way, Main Street, Old Town, and Brown and Stetson. The numbers
reflect income reported from retail shops, restaurants, bars,
hotels and motels.
Main Street reported the biggest increase from 2005 at $31.7
million, followed by Brown and Stetson at $23.4 million. Fifth
Avenue saw a $4.2 million increase, Marshall Way $3.9 million,
and Old Town $1.1 million. Scottsdale Fashion Square went from
$699.9 million to $755.5 million.
Little said the buzz is evident with the new kinds of stores
moving in downtown. Sony opened a store at Fashion Square this
week. Cilantro, a gallery featuring art from Guadalajara, moved
in on Craftsman Court and Covet, a sneaker and fashion store,
opened there two weeks ago.
“Fresh ideas want to be here,” Little said.
Randy Krebs, owner of Covet, said he and his wife visited
Scottsdale several times before deciding to open a store here.
After staying in the James Hotel (now the Mondrian), Krebs said
he knew it was time.
“I said this is an indicator, an opportunity to bring a
different mix to the area,” he said.
And he didn’t think a strip mall or shopping center would be
enough.
“We immediately wanted to be in a downtown location,” Krebs
said. “The street has more flexibility if we want to do parties
with DJs, or a space for a barbecue in the back to give
something back to our customers.”
The biggest jump among the downtown districts was West Main
Street, which took in $80.3 million in 2005 and $112 million in
2006, a 39.5 percent increase.
“What’s happening aside from the tourists is that so many people
have moved here, and they’re decorating their own homes,” said
Marilynn Spiegel, director of Joan Cawley Gallery on Main
Street. “They’ve discovered that the Main Street arts district
is so much more.”
Because many Main Street gallery owners opened up a couple of
decades ago, Spiegel said they have an established clientele.
“The artists are very good, and we stand behind the artists,”
she said.
The numbers are expected to increase when the stores open at
SouthBridge, an urban village with shops, restaurants and living
space along the south side of the canal between Goldwater
Boulevard and Scottsdale Road.
Some business owners are staking their livelihood on the
SouthBridge development.
David Kish, who owns Entertaining the Idea of Tea on Fifth
Avenue, passes out slips of paper promoting the project.
“We hope the new people moving into all the new condos down here
are going to save us,” he said.
Kish said his numbers went up slightly in 2006, but haven’t met
expenses and he had to cut his budget to keep going. He said
Scottsdale residents don’t know the area has changed in the past
couple years and don’t come back enough to find out.
“We’re all struggling. We’re just hanging in there right now,”
he said. “I’m going to give it until the end of the year. If the
locals show me they don’t need tea, I’ll close my door.”
Article can be found:
http://www.eastvalleytribune.com/story/86256
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