Empty Storefronts Still Plague Ridgewood; Business Owners Blame High Rent

Citing high rent, a failing economy and the ubiquitousness of malls and online shopping, Lisa Williamson and her sister Katie Taylor , at the end of June.

What started out as a thriving business changed dramatically after the economy turned, Williamson said.

“We’re definitely not closing because business is booming,” Williamson said. “Our long, eight-year lease is finally up. The rents in town don’t match with the current economy. It just makes it way too difficult.”

Happy Tuesday isn’t the only business in Ridgewood experiencing problems. In January 2010, the number of empty storefronts in Ridgewood topped 40, according to a Patch report last year. Despite talk that business vitality is getting better, the number of empty storefronts remains just below 40.

Some vacant storefronts have plans for new businesses, such as Green Earth Cafe 17 North Broad St., a J-Mart Japanese grocery store moving into 44 Chestnut St., and House of DeCicco Salon moving into 65 N. Broad St.

But other business spaces have been vacant for years and have not shown signs of attracting any new tenants.

Business owners, council members and residents cite numerous reasons for the high number of vacancies, with the state of the economy at the top of every list. Other issues hindering the Central Business District, in addition to high rent prices, include parking problems, less foot traffic, and a lack of anchor stores.

For Williamson and Taylor, it isn't the first time the pair tried calling it quits. In 2010, the they , but their landlord from Long Island refused to end their lease early, they said. 

“Why let us out?” Williamson said. “[Our landlord] knew they wouldn’t get anybody else. When you’re on the hook, you’re on the hook.”

The strip Happy Tuesday is located on includes two other empty storefronts, 202 E Ridgewood Ave and 204 E. Ridgewood Ave, formerly Artventure and Cardventure. The buildings are locked in a long land lease, Williamson said, so no new businesses will move in until after it ends in October.

Retail environment has changed

The downtown retail environment has changed drastically with the advent of the Internet, contributing to less foot traffic and economic problems with retail businesses, said Eugene Ferraro of .

“If you can buy sneakers online, or go park at the mall and park for free, you’re not going to hunt around for a parking space and buy them in Ridgewood,” Ferraro said.

In the current economy, shoppers are also more likely to look for the cheapest deals, said Mary Gorman, owner of .

“People are willing to forgo quality for a better price,” she said.

High rents in troubled economic climate

With more people shopping at malls and online, less purchasing happens in stores, leaving some businesses finding it impossible to keep up with high rent prices.

“There are certain landlords in town [who] absolutely refuse to budge and lower their rent, and still expect to get what people paid five years ago in Ridgewood,” Gorman said.

Gorman has been fortunate enough to have a landlord, John Rogers, who worked with her to come to a rent compromise. Five years ago she was paying $55-per-square-foot, but pays $38-per-square-foot today.

“For those landlords that are working with their tenant, a lot of us were able to sustain our businesses.”

Yet Gorman’s rent may still be considered high. Though it’s difficult to put an exact number on it, an average 1,500-square-foot store should cost about $28 to $32-per-square foot, Ferraro said.

“But there are still some [landlords] out there asking for $45-per-square-foot,” Ferraro said. “And that’s just not going to happen.”

And so some stores remain empty.

Certain business owners think the council should fine landlords who don’t fill their vacancies, especially when they have been vacant for years.

“There’s been empty spaces on Broad Street for years,” Williamson said. “If [landlords] lowered the rents, they’d obviously get someone in there, but they’re not willing to do that, and I’m not sure why. Until a group or someone stands up and says, ‘this is what we need to do as a town,’ I don’t know how much is going to change.”

Village officials however say they don't believe such a move would pass legal muster, and with tight budgets and several pending legal battles, it's not a risk they can take.

Gene and Tara Callaghan . Their store, Irish Eyes Imports, had been in business at the corner of East Ridgewood Avenue and Cottage Place for 20 years.

“My landlord was bumping up the rent in a time when the economy was going down, and it was at a ridiculous level to begin with,” Callaghan said. “We tried to negotiate, but couldn’t get it down to a fair number.”

In addition to cheaper rent, Callaghan also likes that Westwood has fewer banks, food services and salons. These specific businesses can hurt retailers because they make an area less attractive for someone who’s thinking of shopping there, he said.

Though once saturated with banks, Ridgewood is slowly starting to see them move out, Ferraro said. He said he believes the exodus should help the retail environment. However, certain banks were willing to pay well-above $60-per-square-foot for a space, making it harder for landlords to lease a space to retailers for less after they move out.

“Landlords have a tough time biting the bullet and taking half of what they were getting in rent,” Ferraro said. “It’s a tough pill to swallow.”

Parking still a problem

Many business owners think an anchor store, such as a Target or Banana Republic, would tremendously help the business district, said Joan Groome, executive director of the chamber of commerce. 

However, Ridgewood’s parking system is still flawed, deterring anchor stores from moving in.

“In order for an anchor store to move in, they need to be able to provide so much parking, and [Ridgewood] is not set up for that yet,” Groome said.

Some business owners believe a parking garage would solve all their parking problems, but the issue isn’t that simple, Mayor Keith Killion said.

A parking garage has been a much-debated issue in the past. In 2009, there were plans for the , but after a controversial courting, the plan was quashed by the village council.

“People think a parking garage will bring people in, but it’s an expensive proposition in a time where people are losing their jobs and want to keep taxes the same,” he said.

A parking garage would cost “millions,” Killion said, and the council must remain fiscally responsible.

“The council doesn’t just represent businesses, we represent 24,000 people,” he said.

There are currently no plans for another garage, yet John Saraceno, a principal developer of Onyx Equity LLC,  in December 2010.

Stressing the project would make Ridgewood’s CBD more vibrant, the plans include a three-story parking garage adjacent to the Sealfons building, and one hundred apartments above a large first floor of retail space. The proposal is only conceptual for now and has yet to go in front of the planning board, said Mayor Killion.

Despite the overarching challenge of the lowered economy, Councilman Paul Aronsohn, the Chamber of Commerce liaison, remains optimistic.

“I definitely see the situation improving, but it’s clear that our local businesses still face challenges,” he said.

The village council, chamber of commerce and Ridgewood Guild have been working collaboratively on an ongoing basis to overcome these challenges and generate excitement about businesses in Ridgewood, Aronsohn said.

To bring more people to Ridgewood, the Ridgewood Guild has organized a “Movies in the Park” program and will show free movies in Van Neste Square on July 6 and July 20, said Tony Damiano, .

The . The plan designates parking in municipal lots for 25 cents per hour from 6 a.m. to 6 p.m., and metered parking for fifty cents per hour. Parking passes allowing pass holders to park in any lot from 6 a.m. to 2 a.m. are also available for $650 per year.

“Hopefully, [the new plan] will work and hopefully it’ll alleviate some pressures that were building up,” Aronsohn said. “Lack of spaces and cost of parking are ongoing issues, and we’re trying to find the right balance.”

Tom Hillman, president of the Ridgewood Chamber of Commerce, said although there are many vacancies in Ridgewood, the town is just going through a business cycle and is improving, especially within the last two years.

“This cycle is lasting a little longer than normal, but there’s been times [in the past] we’ve had empty stores,” Hillman said. “At one point we had too many banks, but now you see it equaling out…I feel we’re in a more positive situation than we were two years ago.”

Business owners remain optimistic

Even with vacancies, several business owners said they believe Ridgewood's Central Business District is still dynamic and they're putting their money where their mouths are.

"I like this town and I think there's a need for this [type of business] in Ridgewood," said Ken Vassilatos, owner of the Green Earth Cafe, a soon-to-open vegan restaurant on 17 North Broad Street. Vassilatos has a challenge in taking over a space that .

"I think there's a lot of activity here," he said. "Despite the economy, people are still eating."

Some see an established business with potential for growth and snatch up the opportunity. What was Fratelli Trattoria renovation and a new name to signify the rebirth–Fiamma La Osteria.

"We saw the downtown area and it was very vibrant. It wasn't lacking for coffee but we saw an opportunity to enhance it," said Jan Apanich, who with his wife Sara .

Others are proving Ridgewood business can absolutely succeed with a strong business plan and good products.

John Halligan, executive chef and co-owner of , saw Ridgewood as the perfect place to launch a new venue. It was also a homecoming of sorts for he and co-owner Randy Carson, a longtime villager.

Halligan sees the village as a vibrant community with many active diners, and has observed a positive response from the community.

"We've had a nice turnout and we're hoping to stay open, keep diners happy and keep them coming back," Halligan said. "We love Ridgewood, and we're pleased with the way the town has embraced us and taken to us."