City may fund market study of Route 1 economy

The City of College Park may contribute $5,000 to help fund a study that would provide insight into the downtown economy.

At a work session last night, the College Park City Council heard a proposal to share the costs of a study of the marketplaces of this city, Hyattsville, University Park and Riverdale Park, which Hyattsville Community Development Corporation brought to the council. Because the study would give city officials insight into the nature of the city's economic needs, several council members said they supported the plan.

The stated goal of the study is to analyze the economic demand, both now and in the future, for retail development along Route 1. It will also examine specific proposed development plans — such as East Campus, a project that would bring hotels, restaurants and housing to College Park, and the Cafritz Property in Riverdale Park, where a Whole Foods Market is slated to be built.

"We have many development issues that have a common effect on us all, be they traffic or other impacts," Hyattsville CDC Executive Director Stuart Eisenberg said during the meeting. "The idea behind this study would be to help us understand our marketplace — its demand capacity and how much development it can absorb from an economic standpoint."

It will consider many factors that impact economic climate, including demographics and vacant buildings. Officials said it will also attempt to assess the demand for future retail projects, such as restaurants and grocery stores.

"We're doing this from the supply and the demand side," Eisenberg said. "You can't look at one without the other. … This is going to be a great service to your smaller businesses."

He added that because the university is such an important aspect of the community, the study will specifically look at student spending patterns and how they affect the area.

District 1 Councilwoman Christine Nagle said the study will prove beneficial for the city's community.

"I'm very intrigued by your proposal and I have to say I think it's a great idea," Nagle said. "I'm prepared to support this."

The last market study performed in the area was in 2008, and thus, the information is outdated, according to a letter from Eisenberg to the council.

The study will cost between $25,000 and $30,000. Eisenberg said he is requesting $5,000 from each municipality to fund the project.

While District 4 Councilwoman Denise Mitchell expressed concerns about the role of each individual community in the study, Eisenberg said the Hyattsville CDC wants each town to be involved in the project but will not come back to the communities to request more than the initial $5,000.

"Where people tend to go factors into what constitutes a market," he said. "Where are people shopping outside of our communities? That is one question. … Looking at these things comprehensively is important."

kirkwood@umdbk.com