New retail projects in downtown Lawrence continued to materialize in 2001 despite the fact the national economy suffered a virtual meltdown.

Downtown developers pushed ahead to create retail space for the downtown area, either finishing or starting construction on nearly 20,000 square feet, and confirming that another 35,000 square feet or more of retail space is planned for the next two years.

Lawrence restaurateur Bob Schumm is among those entering the downtown development fray. He has completed construction on a three-story building next to his Buffalo Bob's Smokehouse. It has 8,700 square feet of retail space.

Downtown restaurateur Bob Schumm was among those in the building fray. He completed construction on a three-story building next to his Buffalo Bob’s Smokehouse early in 2002. It has 8,700 square feet of space that he is marketing for retail, and he’s not at all concerned about downtown suffering any long-term effects from the recent recession.

“If I couldn’t see a 25-year horizon, I would not have built that structure,” Schumm said. “I wouldn’t have torn down the building that was there and spent the money to rebuild it to the quality that I did.

“I think downtown is as strong as it has ever been. The money that is being invested here is a very good sign for the future. And really it’s not just the money but the type of people who are being attracted into development here.”

Other developments

In particular, Schumm said he was pleased to see in recent years the Fritzel family create new retail and office space in the 600 block of Massachusetts Street, the Winter family in the 700 block of New Hampshire Street, and the Moore and Shmalberg families in the 900 block of New Hampshire Street.

“You have a lot of the local developers who were not attracted to doing new projects in downtown years ago, but they are here now,” Schumm said. “That is a very good sign. These local people who have substantial money to invest in this community have decided to invest it here. When that level of interest goes from about zero to very sizable, it is very encouraging to a guy like me.”

Dale Miller and his family are among the longtime investors who are adding new downtown projects to their lists of investments. Miller and his father, who have held an ownership interest in the Eldridge Hotel for years, are now set to build a 28,000-square-foot retail/office building directly south of the hotel.

Construction on the building, which will occupy a former pocket park used by the Eldridge, won’t start until he finds a retail tenant for the 7,500 square feet of ground floor space. But Miller said his delay in construction should not be construed as a sign he’s losing confidence in downtown.

“I still think the downtown is one of the better long-term investments in Lawrence,” Miller said. “I think what makes it attractive is that it is unique. That has been the theory all along.

“We hear from people all the time about how well known and how everyone thinks the downtown is so neat and something we should protect. Those type of comments help make you comfortable investing in the area.”

No tenants yet

The economic slowdown hasn’t gone entirely unnoticed downtown. In fact all the major retail projects in the area share one characteristic: They don’t yet have tenants.

Martin Moore who is a partner with the Shmalberg family in the Downtown 2000 project that seeks to redevelop the 900 block of New Hampshire with a multitude of retail, office and residential uses admits retail prospects were few and far between during parts of 2001.

“After the 9-11 disaster, things really slowed down,” Moore said. “Retail already was kind of evolving, and that certainly didn’t help it any. But I have noticed a significant pickup in interest since the first quarter of this year.”

Construction is under way on the development’s first building, a four-story space on the northwest corner of 10th and New Hampshire streets. The building will feature 7,600 square feet of retail space in addition to 20 loft-style apartments and office space that has already been leased by the city.

Starting to pick up

That building, though, is just the tip of the iceberg when it comes to new retail space. Moore said he and his partners continue to evaluate the feasibility of building a hotel at the southwest corner of Ninth and New Hampshire streets. If the hotel doesn’t pan out, though, the corner will be used to house retail and office operations that would add another 9,700 square feet of retail space to the downtown area.

In addition, Moore said plans remain to add 26,750 square feet of retail space along the east side of the 900 block of New Hampshire.

That part of the project may not begin for another year and a half, but Moore said he is encouraged by the new retail interest the project received during the first part of 2002.

“Things are starting to pick back up again,” Moore said. “We have had some very encouraging discussion with people in the national arena about Lawrence, Kansas.

“They are saying certain types of retail aren’t doing well but other types are. Big-box stores are struggling a bit, but I think that pushes a lot of interest toward our type of project, which is much more a street scene, traditional downtown type of project. It’s not the type of shopping you do on the Internet.”