City hopes to see more small businesses on Rt. 1

Locally owned businesses are what give this city a distinctive College Park charm. With opportunities to snag new retail spaces, officials are increasing efforts to help small businesses establish a stronger presence in the area.

High rents, a lack of parking and a sluggish economic climate have lead to a large number of shuttered businesses and vacant buildings gathering dust in the city. With the number of businesses in the city expected to return to pre-recession numbers, city officials said they will focus on encouraging residents and students to buy from locally owned businesses and urging these stores to open up shop in the city, according to College Park Economic Development Coordinator Michael Stiefvater.

"We've had a lot of new businesses come to College Park recently with the new student housing," said the city planning director Terry Schum. "You've seen an influx that you've never seen before."

In 2007, there were 506 businesses — including establishments such as retail stores, eateries, offices and hotels — in the city. While the nation dipped into a deep recession beginning in December 2007, the number of businesses in the city stayed the same in 2008, only to see a 4.2 percent drop to 485 in 2009 and 2010, according to city documents.

But Stiefvater said this year the numbers returned to those of 2007 and 2008, showing the city may see a boost to its economy.

With the recent addition of The Varsity and other mixed-use projects, Schum said an array of new businesses have cropped up this year — and city officials want to give local owners the tools to stay afloat.

In February, city business owners collaborated with city officials to create the College Park Neighborhood Business Alliance, a coalition of businesses focused on promoting "buy local" efforts. Director Chrissy Rey said the organization exists to help small businesses flourish in a city that has seen many open and quickly shutter during the past few years.

"More money will go into the local economy with locally owned, independent business," Rey said.

Peter Casazza, owner of Big Planet Comics, said local businesses give the area a distinct character and make it more attractive to potential customers than a downtown strip lined with the typical large chains.

"Independent businesses are what make a neighborhood stand out," he said.

Freshman biochemistry major Andrew Shaw said he felt large chains have better management and prices more appealing to college students than local shops.

"I feel like the large chains are generally cleaner and more regulated," he said. "We eat at large chains for a reason, not necessarily because it's famous, but because it's cheap."

But with credit conditions and the housing market expected to improve nationwide, small business owners will be able to borrow more money, creating an economic environment more conducive to small business owners, said Ryan Sweet, an economist at the New York-based economic forecasting firm Moody's Analytics.

New businesses have a host of city-specific issues to combat to be able to thrive downtown, according to several College Park small business owners.

Jim McGinnis — former co-owner of the now-defunct Varsity Grille and president of the Restaurant Brokers & Developers, Inc. — said the high rents landlords impose make it challenging for mom-and-pop stores to generate enough revenue to cover operating costs.

And with a lack of parking downtown, areas with less foot traffic often struggle to garner a loyal student customer base.

"You can't just depend on the students, you need a bigger base," McGinnis said.

John Brown, owner of R.J. Bentley's, which has operated in the city since 1978, said the sluggish economy has forced businesses to be price-conscious, but the sheer volume of restaurants in the area makes it difficult for eateries in particular to sustain themselves.

"The competition is incredible," he said. "It's like a massive open-air food court."

With all the competition, District 2 City Councilman Bob Catlin said he believes the area will continue to see high restaurant turnover, adding landlords should lower rents to appeal to different types of businesses that cannot front the high rent prices restaurants can afford.

Mark Srour — owner of Cornerstone Grill & Loft, which has been in business since 1962, when it opened as The Rendezvous Inn — said no matter what type of business storefronts house, patrons should frequent these establishments to help improve the city's economy.

"I think everyone should do their part in keeping this town alive and exciting."

bach@umdbk.com