2011 Business Review: What We Lost Downtown

In this, the second year I've written Stuck Inside of Knoxville, the pace of change continues to be breath-taking. It's sometimes hard to see as events happen, alterations are made, new faces emerge and old ones fade. In retrospect, however, a simple listing of business losses, changes and additions highlights the intense comings and goings in this relatively small patch of earth. Today we'll look at what has been lost. I doubt my memory and limited time for research will prove exhaustive, so you'll have to note in the comments additional closures I failed to recall as I wrote this.

Arby's on Gay Street closed December 30, 2010

Two closures happened just before the end of 2009, but together with another early closing, they felt like the beginning to the new year, and they were big in different ways. The closure of Arby's on Gay Street on December 30 was troubling both because of its long tenure in that location and because the location is so prime. The fact that this centrally located corner continues to be vacant a year later is troubling.

Regas closed December 31, 2010 after Ninety Years

The next day, after ninety years at the same location at the other end of Gay Street, downtown institution Regas closed its doors for a final time. Just days into the new year an emblem of downtown's resurgence, the S and W announced it was closed "until further notice." Further notice never came and three major landmark businesses were gone.

It was a pretty staggering beginning, maybe enough to make one wonder if the momentum downtown had faltered or the recession was finally asserting itself in an area that had seemed largely immune to its effects. There was enough bad news through the rest of the year that, when viewed alone, seems to support that question.

Patrick Sullivan's in the Old City Closed in June 2011

If we had known, for example, at the beginning of the year that the two most visible buildings in the Old City would be empty by summer, no doubt it would have seemed the apocalypse was certainly upon us and indeed, that's just what happened - the emptiness, that is, not the apocalypse: Manhattan's had closed the previous summer and still sat empty when Patrick Sullivan's announced its closure at the beginning of the summer. One of the first buildings rehabilitated by Christopher Kendrick in the long march that has been the return of Knoxville's downtown, it had been Patrick Sullivan's for eighteen years and was previously the lovingly remembered Annie's. With that closure the central corner in the Old City featured two empty businesses.

Notice of Night Owl's closure, December 2011

The Old City would also see the departure of the Fortunate Traveler for the Turkey Creek Public Market. In the last days of the year - and I haven't seen this mentioned elsewhere - Night Owl in the Old City also closed its doors for the final time. Just a couple of blocks up the hill, the 100 Block also saw losses. Nama vacated, Unarmed Merchants cast their lot with the aforementioned Turkey Creek Public Market and late in the year, Eleven, a women's clothing store announced its closure as well.

1 Market Square sits empty, 2011

Market Square Kitchen closed April 2011

Meanwhile, Market Square was no stranger to losses during 2011. 2 Market Square was placed on the Market, leading Reruns to vacate and across at 1 Market Square, in a surprising development, long-term restaurant Market Square Kitchen closed. This meant that three corners of Market Square were vacant. It came very close to being four had Blue Coast Burrito not opened the previous month. For the jewel of downtown re-development to have three of four corners empty did not seem like a good sign. In a related development (to 1 Market Square), the Hotel Oliver, in the same building, closed for renovations. Black Market also closed on Market Square.

Ace High Tattoo closed December 31, 2011

Another closure I haven't seen reported elsewhere: As of the last day of the year, Ace High Tattoo on Clinch Avenue closed it's doors for the last time. We're told Kimberly Clark is leaving downtown as is the Revenue Recovery Corporation which employs over one hundred people in the Mechanics Bank and Trust Building on Gay Street.

Revenue Recovery Corp. announces departure, Dec. 2011

It doesn't look good. By my count that is fourteen businesses closing or announcing that they are moving and it isn't just the fact that businesses closed, it's the major brand names we lost. Take into account the prime locations losing businesses and that some still sit empty and it is disconcerting. So, do we all need to rush to escape the city before the rest of the sky falls? 


Not so fast. Tomorrow I'll look at businesses that adapted this year and become stronger as a result.

100 Block, Unarmed Merchants and What's What, Part Two

Gorgeous, hand-crafted mirror from Unarmed Merchants: $18

Yesterday's post regarding the closing of Unarmed Merchants on the 100 block elicited several comments which then led to a post on Spiniffy by Andrea, who often comments on Stuck Inside of Knoxville. Her post, in turn, generated an agreeing comment from yet another blogger. Several things about this provocative elaboration prompt me to respond. I appreciate the additional thoughts. Andrea lives on the 100 Block and knows the residents there much better than me, obviously, and I appreciate her input.

Her original comment stated in part:

"I live on 100 Block and I’ve been in Unarmed Merchants . . . it was way overpriced to what the residents on this end of the city can afford. And the products aren’t that different from what you can find at other shops in downtown. And it seems like they cater to an older demographic . . . when businesses open up here, they need to keep in mind that the 100 Block is full of young professionals and college students. Typically people without a lot of money, who like to stay up late, and who like to go out to eat or hang out in bars . . . Those are the types of businesses we need on 100 Block. More late night restaurants and bars/coffee shops and younger, funkier retail . . ."

Interestingly, Andrea echoed some of what I heard from the person I spoke to in the store: The 100 block residents are often just starting out and would have a hard time buying some of what the store has to offer, which is why they had hoped for more foot traffic. I disagree in some respects, however. I don't think the prices were that much different than many other downtown stores and I think what Aaron was trying to do was offer quality products which would be different than what one might find at Target or World Market as Andrea later mentioned in her post.

There is a basic dilemma at work here: Life in an urban environment is more expensive. Any small store not owned by a chain cannot get the deals from vendors that Walmart or Target or Kroger can get. So, to open up a small store in an urban environment, retailers have to charge more because they pay more and deal in much smaller volume, meaning they have to make more off of each purchase.

The only ways that I see for urban residents to avoid paying this higher price is to have Target come downtown or to drive to Target in the suburbs. What happens in each case? In the first we have a bunch of chain stores downtown that take the soul out of the place. We look like any other suburban shopping center. Didn't we move downtown because we wanted something different?

What if we live here, but drive out to get our groceries, clothes and furnishings? Then businesses won't come downtown and eventually neither will new residents. The city will become the ghost town it was twenty years ago.

Both Andrea and another commenter suggested more bars and other places to hang out late at night, but I wonder, how many bars can the downtown population support? On Gay Street we have Sapphire, Downtown Brewery and a rumor of another coming across the street. On the Square we have Preservation Pub and Oodles Wine Bar. The Old City, which is only a block from the 100 Block already has seven bars, a pub, a wine bar and an additional bar to open soon. Bars also do little to attract people during the day or on many weekday nights. Can a successful portion of the city be based on weekend nights? Also, how can people who have such a small amount of money afford to much spend very many nights out at bars? It's not cheap to pay cover charges and drink.

Andrea has developed a great list of potential businesses that go beyond bars. I'll suggest that you go to her blog to read the complete list. I'd love to see many of the same businesses she wants on the 100 Block in any part of downtown. It seems likely they would be successful. I do maintain what I said at the beginning, however: these things would be more expensive in a city. A bakery, bagel shop, butcher shop or cheese shop would be more expensive than a suburban counter-part. Why would residents of the 100 Block not simply drive to Walmart to get cheaper versions of all these items?

The reason I try to spend as many of my dollars in the city as possible is because I know each of the businesses improves my quality of life downtown. These people took a risk so a service or product I would otherwise have to drive to get is available to me in my neighborhood. Bars and restaurants are great, but we need clothes, art, food, books, electronics, hardware and much more. The only way we get it is if we support the people who provide it.

Breaking (and heartbreaking) Business News

After First Friday in August, one of the stalwarts of the 100 Block of Gay Street will close its doors downtown for good and, likely, make a move to the new Public Market at Turkey Creek in a much smaller version of itself. Unarmed Merchants, owned and operated by Aaron Shugart-Brown who has been an active participant in life on the 100 Block since opening the shop in December 2007. The shop features art and crafts from local, regional and international artists and artisans.
After enduring the renovations on that block, which began not too long after the business opened, and hoping events sponsored by the city and natural growth would increase foot-traffic enough to sustain the business, it appears the hopes were not well-founded. While that block is a primary downtown residential area, not enough business was generated by local residents to make the business succeed. The feeling is that the 100 block is still ascendant, but not quickly enough for this business.

Interior of Unarmed Merchants

Plans now include a large-scale reduction in inventory by reducing prices, placing some merchandise at Lox (103 W. Jackson) and opening a booth at the Public Market. It's a sad blow for the 100 block and another example of how downtown residents and visitors alike need to think of downtown as more than Market Square and the central blocks of Gay Street. If we don't, then those spots will be the extent of our little city.
This closing follows the recent Nama move to a more central Gay Street address and the closing (during the street work) of Havana Nights. Fortunately, there has been good news on the block since the renovation, including the opening of furniture store Nuveau Classics and Harry's, a semi-kosher deli. Work also continues on that block at the southwest corner of Jackson and Gay in a project that offers more retail and residential space.
Finally, and somewhat ironically, the the same day I learned the news, WATE broadcast piece that highlights the fact that downtown residences are selling very well and it features the 100 Block prominently.

100 Block Officially Reopens with a giant Block Party



Balloons Mark the Entrance to the 100 Block of Gay Street, Knoxville, October 2010

First Friday featured celebrations all over downtown. One of the biggest was on the 100 block of Gay Street which has finally reopened after a lengthy and painful reconstruction. The wait has been worth it.

Crowds Fill the Street at the 100 Block of Gay Street, Knoxville, October 2010

The sidewalks are much broader and have a faux tile design. The street is more nicely paved, less complicated with the closure of the intersection with State Street and with fewer lanes than its previous incarnation. One of the most picturesque of any blocks downtown, the businesses and residents have suffered while necessary underground repairs were made and surface improvements were put into place. While the block has been essentially finished for several weeks and a ribbon cutting ceremony was held in July, this was the official announcement that they are open for business.

City People Booth at 100 Block of Gay Street Grand Opening, Knoxville, October 2010

For the celebration, food, music and other entertainment was offered alongside the art galleries which have become synonymous with this part of downtown. The City People group also offered tickets for sale to their upcoming Tour of Downtown Homes set for October 10, which is a fun event know to convert curious onlookers to downtown residents.

We Have a Tradition provided a shot of Rock and Roll to the festivities

In that connection, this week saw the opening of Nouveau Classics, the newest business on the block. There are more improvements to come as the city plants large trees to line the street and more businesses are slated to be added. The next event is already set: a Haloween celebration for October 29.

I think we should all give a tip of the hat to the businesses that endured this difficult period. Check out Nama, Aaron at Unarmed Merchants or one of the others. The block is definitely worth the walk from other parts of downtown and will, in my opinion, become a more sought-after location for downtown living.