Downtown Gets a Bellyful All agree that city center's revitalization is largely driven by proliferation of restaurants. But how much is too much?
By: Lisa Micali	Business New Haven

For several years, trend-watchers have been keeping an eye on downtown New Haven - and for good reason. With a well-heeled daytime population of more than 200,000, New Haven's downtown with its tree-lined streets, manicured central Green, smart boutiques, bustling restaurants, galleries and museums is creating a self-sustaining life of its own.

Bucking statewide urban trends, the heart of the Elm City has succeeded in creating a critical mass of urban residents that in turn are supporting new entertainment and shopping venues - something Stamford and Hartford, with their cold and corporate streetscapes, are trying to emulate with new redevelopment projects aimed at luring the metro sophisticate back into the 24/7 city center. It's a trend that is trying to gain purchase in every major urban center - but one that is shining brightly in pockets of vibrant building stock in New Haven's downtown.

It all began with the restaurants. In fact, it wouldn't be out of place to dub New Haven the unofficial gastronomic capital of the state, with its endless array of international and cosmopolitan cuisines multiplying like suburban Chinese take-out joints along some of the hottest spots downtown: Ninth Square and Broadway.

Notwithstanding the wonders of Hartford's Franklin Street eateries or Westport's chi-chi bistros, it almost seems as though New Haven has more restaurants per square foot than most cities in the state, with a half-dozen more poised to open in the next few months. And these developments are gaining speed and traction despite the lackluster economy and the possibility of war.

The restaurant buzz, preceded by the appearance of convenience stores and delis in the neighborhoods (considered an early indicator of an area's revitalization) is affecting traditional retail space, too, with new boutiques sprouting up in the Broadway area - not to mention the much anticipated re-opening of the Chapel Square Mall some time in the fall, adding fine retail establishments to an already unusual roster of area merchants.

With half of New Haven's jobs located downtown, it's no wonder that prime restaurant and retail space is at a premium. Neighborhoods such as the Audubon arts district and Ninth Square - once derelict and ignored - are now humming with activity blending commercial tenants with entertainment and recreational venues. There is a new energy on the street, and local merchants and developers are jumping at the opportunity to take advantage of it by expanding into new concepts worthy of the region's discriminating visitors and inhabitants. It's a trend linked directly to the increasing number of downtown residents. And with more housing inventory expected to come online in the next few years, the demand for downtown retail and services will continue to rise.

Even the lunchtime business crowds are venturing farther afield as so-called destination eateries take root in unconventional spaces founded by area locals. Take the recently opened Gastronomique on High Street, New Haven's latest gourmet take-out entrant. The space, next to Pasquale's barber shop (a longtime High street fixture) houses a postage stamp-like 180 square feet, but chef Marc Woll, a Culinary Institute of America grad with a formidable culinary résumé, already has a loyal following since opening the eatery in October. So far, business has been good, Woll says.

"I wanted the place to feel like a typical warm French provincial bistro while offering gourmet and organic juices to go. There weren't many spaces available when I was looking back in the fall. I liked this location - there are plenty of apartments nearby and Yale is down the street - and I just thought if my cooking was great, customers would come despite the small size of the place."

And that's just what happened. "It gets a little hairy when more than three people are inside," acknowledges Woll, a Guilford resident and former chef at Tibwin Grill. "But customers are used to it and call their orders in ahead of time or wait outside."

Gastronomique prepares meals to order and caters primarily to Yale students and professors, as well as local merchants looking for high-minded, French-inspired cuisine at a bargain price. Sure, it's the size of a welcome mat, but for Woll, his first restaurant venture has turned out to be a bigger success than he ever anticipated.

"I knew I'd be successful, but I never dreamed I'd be this busy within the first six months," he says.

Another venture launched last June by the local husband-and-wife team of Maurice and Cynthia Juarez of Hamden is the Funki Munki, a gourmet lunch stand famed for its unusual signature hot dogs. The couple will be back under their lime green umbrella in front of the Chapel Sweet Shoppe as soon as the weather permits, says Cynthia. "We'll be back out on Chapel Street, at the same place, maybe by the end of March or beginning of April," says Cynthia. "Maurice has many new ideas for the season and will be introducing new wraps and sandwiches, new soups and desserts and, of course, the Funki Munki salad and hot dogs."

The Juarezes share a culinary background - Cynthia in restaurant management and Maurice in the kitchens of top New York restaurants including the Union League Café. When they decided to open their first restaurant they found themselves faced with a shortage of available downtown spaces. After looking around without much success, they decided to try the mobile food carts so prominent on downtown street corners selling hot dogs. "For us, it just made sense to get out of the box and try something out of the ordinary in an unconventional space - a hot dog cart," explains Cynthia. "There really weren't any desirable spaces available and the [relatively low] risk for us made a lot of sense." The stand - not exactly your average hot dog cart - was a big hit with the lunchtime crowd from area offices and Yalies.

The College/Chapel district, a longtime poster child of downtown vitality since developer Joel Schiavone's rehab back in the 1980s, leads the pack with negligible vacant retail/restaurant space outside of the newly vacant Tibwin Grill (which closed in November immediately following proprietor/GOP mayoral candidate Richter Elser's defeat at the polls). The inherent qualities of these blocks - with their theaters, historic, multi-story buildings, and proximity to Yale - made them a successful urban revitalization project.

While the streets enjoy heavy foot traffic, it's a flourishing mixed-use area that includes hundreds of residential units, specialty retailers and savvy restaurants combined with small commercial tenants in upper level offices. Dozens of restaurants, nightclubs and bars make the area a big destination for going out. After dark, activity shifts from shopping and sipping lattés on Chapel to Crown and Temple Streets with its six nightclubs and bars. The Shubert, too, showcasing Broadway shows, opera, dance, musical concerts and family entertainment is a magnet for a wide variety of diverse restaurant patrons.

Part of downtown's recent success can be attributed to Yale's continuing revitalization efforts. With its investments in key properties on Broadway and in the Chapel Street area, Yale has successfully implemented a master plan for the area, convincing national retail chains such as J. Crew and Origins to locate here. But much of the expansion on Orange and Broadway has come from local merchants who, with one success under their belt, decided to introduce another concept nearby. Entrepreneurs such as Hasni (Jeff) Ghazali, owner and chef at Bentara, the successful Malaysian eatery at 76 Orange Street are on schedule to open the doors of Central Steakhouse, a 75-seat contemporary steakhouse at 99 Orange Street, early next month. Down the street, Felix Proto, owner of Orange's Grand Gourmet catering service, plans to open Nina's Bistro, a contemporary Italian restaurant, at 44 South Orange Street, at about the same time.

These two new restaurants join Miso, a stylish new urban Japanese restaurant at 15 Orange Street that opened earlier this year across the street from Royal Palace, a gourmet Chinese restaurant that has earned rave reviews from the New York Times' Connecticut section. With the opening of these two restaurants next month, the total number of restaurants in Ninth Square will jump to six.

"New Haven has come to be known as a restaurant and bar town," explains Ghazali. "So it was natural that when we wanted to open a new restaurant, we decided to look here first. We were fortunate this building opened up in Ninth Square because of the mix of exciting dynamics already in place here."

Elsewhere, developers such as College Street Associates LLC, William Jackson Ewing, ELK Investors and Branford-based Doug Anderson of Anderson-Wilcox Inc. have embarked on renewal plans without public subsidies, convinced that New Haven is making a compelling comeback after many years and even more false starts. The city's abundance of historic buildings is one reason for the downtown renaissance, explains Scott Healy, executive director of the Town Green Special Services District, a creation of downtown property owners working with the city to promote a clean, safe and enjoyable downtown.

The old Hotel National building on Crown between Orange and Church street is a prime example of this. It's undergoing a complete renovation by local developer Doug Anderson of Anderson-Wilcox - without public dollars. The building, a historic landmark neglected for many years without much hope for its renewal, was a risky proposition in any market, taking into consideration the extensive rehab it required, but the owner was able to make the numbers work, says Healy.

Part of the reason developers are scooping up area eyesores here is the reasonable price of historic buildings compared to the rising costs of older buildings in other cities, explains Healy. "There's a certain buzz in development circles about New Haven," Healy says. "If you were to do a demographic analysis of greater New Haven, you'll find quite a bit of wealth, high per-household income but a real lack of significant retail activity. The closest upscale mall is in Farmington or in Westchester. The average New Englander doesn't want to drive such a long distance."

"Certainly, downtown will not be the retail destination it once was in the 1950s," says Healy. "There is a different kind of retail that occurs in cities with New Haven's characteristics. We're at the center of a demographic area that is under-served by high-end malls. New Haven has a downtown with significant amenities like architecture, the arts, restaurants - things that make a day of shopping a great experience rather than a mundane mall experience," says Healy. "Those comparative advantages bode well for New Haven, and for that reason we have seen significant growth in boutique retailers and some of the more savvy, urban national chains like Urban Outfitters or J. Crew."

Healy says Williams Jackson Ewing, the Baltimore developer renovating the Chapel Square Mall, is proudly showcasing its recent acquisition in New Haven, often touting it at national conferences. The owners are busy repositioning the mall as an upscale urban retail, office and residential complex and have kept a low profile since it began renovations. The developers (who didn't return telephone calls for this story) are working to recruit retailers and restaurants for the more than 200,000 square feet of space. Sources close to the developers say they have received several nonbinding letters of intent from five potential tenants and that the upscale men's retailer, Jos. A. Bank, an upscale menswear retailer, has recently signed on.

Other potential tenants such as Talbot's are currently being wooed, while LA Fitness just backed out, a major blow, according to area realtors. Plans for Richard Rosenthal's (of Hartford's Max Restaurant Group empire) new restaurant in New Haven are also on hold as his group focuses on the Springfield, Mass. market. Rosenthal's group was looking at opening a new "Max"-style eatery in the Omni Hotel with entrances inside the new mall, outside access from Temple Street and an interior entrance from the hotel. Presently, Max owns and operates five restaurants in the Hartford area and employs some 450 people, one of the state's largest independent food and beverage employers in the region. If Rosenthal decides to open in New Haven, you can bet it's a good sign the Elm City has arrived.

Nevertheless, retail space in Chapel Square Mall might be difficult to fill because of the peculiar dynamics of New Haven's market, say area brokers. Most exclude the mall in their current outlooks, saying it's too early to predict what effect the space will have on downtown retail. "Current retail space is at a premium downtown," adds Carl Traub, president of Traub & Co., a commercial real estate firm. "It's almost non-existent, and we don't have anything to market right now. We have 2,000 square feet on Court Street, and interest from national chains has been minimal."

Traub says that national retailers view New Haven demographics as soft in a recessionary marketplace. "In consideration of their expansion plans, they're going to the hotter areas first and doing little in tertiary markets where they see higher risks right now."

There is a real dearth of supportable downtown retail types outside of convenience or service-oriented stores, small higher-end boutiques and dining and drinking establishments. With new residential buildings coming online, demand for retail is up and the shortage is ever more glaring.

"Space is really tight downtown," says Andrea Pizziconi, a development associate at Yale University Properties, the university's real estate arm. "And we've had an exceptional amount of interest in our remaining vacancies."

Pizziconi points to strong interest from restaurateurs (especially from Fairfield County) in the former Tibwin Grill space, as a key measure of New Haven's pull as a leading cultural and entertainment destination. She says University Properties expects to have a new tenant running by August, ready for the fall semester. But because of the size of the space, she adds, you need to have serious operators with the right concept.

The Broadway revitalization headed by Yale has brought 12 new merchants to New Haven since 1997. Yale has made four deals already this year. The latest, the MexiCali Grill at 320 Elm Street, opened last month. Another, Bistro La Mensa at 65 Broadway (in the rear of the Yale Bookstore) is set to open in June. The owners of Caffé Adulis, Gideon and Ficre Ghebreyesus, wanted to take advantage of an unconventional space that had a "captive audience," says Gideon Ghebreyesus of his latest project.

"The space is unusual, yes," he says. "But the foot traffic and need for such a restaurant is very apparent. We will serve inexpensive Italian food, something lacking in this part of town. We wanted to be part of the Broadway revitalization because Yale has done a tremendous job there. In my 24 years in New Haven, I have never seen such a resurgence of revitalization."

Currently, University Properties is evaluating the best course of action for its last remaining vacancy on York Street, next to Barrie Ltd. Bootery. "The fact that its vacant is in no way an indication of any softness in the market," adds Pizziconi. "An incredible amount of retailers would like to locate in the Broadway area. We just want to make sure we're putting in the best, most complementary concept to complete the Broadway project."

At 37 Broadway, between J. Crew and Alexia Crawford, Yale recently opened Thom Brown, a trendy, contemporary women's shoe store. Brown cites Yale and the revitalization of Broadway as the reason he chose New Haven. "I have been watching the New Haven market for several years and, with all the recent changes, realized that now was the time to act," says Brown. "Broadway has a great mix of retailers and restaurants, most of which are local owners. There is energy and activity on the street which, when combined with the right group of tenants, is a tremendous opportunity." Thom Brown became the 68th merchant in Yale's portfolio, five of which are national retailers and 63 of which are small independent merchants, according to University Properties.

"Downtown urban living is thriving backed by the renewed demand in downtown [living spaces], what is being termed as the 'return of the 24/7 society,'" adds Traub. " Each new housing project is filled before it goes on the market, waiting lists at the Taft, Ninth Square, and [University] Towers are getting longer, and the demand doesn't seem to be letting up.

The critical mass needed to support businesses during the day and into the evening is already here. Once several more projects are completed like the former headquarters of the Southern New England Telephone Company at 227 Church Street are online, demand for new retail will only increase," Traub adds. While New Haven's downtown restaurant scene has blossomed, bolstered by praise received in the New York Times and on the Food Network, is there an overabundance of restaurants downtown. Opinion is divided.

"Competition is healthy," explains Ghezali of Bentara. "Friendly competition helps us all thrive. If one restaurant has a line, they'll walk next store and go to another. The more the merrier; it's good for all of us."

In other parts of downtown, such as lower Chapel Street, for instance, the city's façade-improvement program has taken hold as retailers clean up their buildings with incentives from the city. The campaign is helping revitalize the two-block area, once a major eyesore, by allowing owners to improve their building facades by repairing or enhancing deteriorated facades. New awnings, lighting and signage have already spruced up the area and more improvements are in the works.

To date, New Haven has made remarkable progress jump-starting areas that even two years ago were sidelined. People are going downtown to shop and dine; the only question that remains is: Will well-off suburban folks really come to New Haven to shop?