Subject: Business owners told light rail is commerce catalyst & Smart steps drawing praise for Valley Metro Date: Friday, January 13, 2006 2:28 PM Business owners told light rail is commerce catalyst Jim Walsh The Arizona Republic Jan. 13, 2006 12:00 AM A flower shop owner whose business is in the path of Metro rail construction says he is encouraged after hearing business owners from other cities say the light-rail line will fight blight. Dave Johnson, owner of Watson's Flowers in Tempe near the Mesa border, said after a panel discussion Thursday night, "They all said more eyes makes those problems go away. . . . You have extensive lighting that drives away the drug dealers and the prostitutes." The business owners from Houston, Minneapolis and Salt Lake City spoke Wednesday at a "Getting Ready for Rail" forum sponsored by Valley Forward at the East Valley Institute of Technology. About 30 business owners attended the Mesa session. The panel presented another forum in Phoenix for business owners there Wednesday morning. The rail line will follow Central Avenue to Camelback, pass Sky Harbor International Airport, cross Tempe Town Lake via a bridge and head 1 mile into Mesa along Main Street. William Franks, president of Spire Realty in Houston, described how rundown buildings frequented by crack dealers in midtown Houston were replaced by three-story garden condominiums thanks to construction of Houston's rail line. "I think you'll see the natural metamorphosis," Franks said. "It takes a catalyst like light rail." They described how business plummeted, then took off, after light-rail lines were built. They also offered business owners advice on how to survive the impact of two years worth of construction, including looking for new ways to reach customers, to obtain lines of credit and to pursue Small Business Administration loans. Main Street in Mesa will be ripped up, with one lane of traffic open in each direction during the rail line's construction, which is expected to start in earnest later this spring. Main may narrow to only one lane for both directions during off-peak hours, said Daina Mann, a Valley Metro spokeswoman. The 20-mile line will cost $1.3 billion, with construction ending in mid-2008. She said the worst of the disruption should be over by the end of 2007. Construction begins with reinforcement of Tempe Canal Bridge, which separates Mesa and Tempe, by mid-February, Mann said. A telling side note occurred when Johnson told the panel that family members were pressuring him to move the family owned business because of rail construction and blight. When panelists learned his flower shop was only 200 feet from a planned rail station, they quickly advised him to stay open. "Don't sell," said Tony Weller, operator of Sam Weller's Zion Books in downtown Salt Lake City, a 76-year-old family business. Franks told Johnson to buy the land of other property owners who panic, saying property values along the rail doubled in Houston after the line opened. _____ Smart steps drawing praise for Valley Metro Jan. 13, 2006 12:00 AM There's some encouraging news and some sobering news about the Valley's $1.3 billion light-rail project. Even some suggestions. And they're all from what should be a reliable source: business owners from other cities who have experienced the impact, and sometimes the trauma, of light-rail construction. First, the good news: The Valley Metro Rail system apparently has learned a lot from the mistakes of other cities in planning what is the most ambitious public-works effort here since the Central Arizona Project. During a visit to the Valley this week, four businesspeople from Salt Lake City, Houston and Minneapolis were nearly unanimous in praising Valley Metro for creating programs to soften the negative impact on local businesses during the three-year construction program. "I would give (your project) a 9 on a scale of 10," observed William Franks, a developer from Houston. Construction is under way on the initial 20-mile segment linking Phoenix, Tempe and Mesa. It's slated to open in 2008. The federal government is paying for about half the project. "Where were you guys when Houston opened?" quipped David Edwards, who owns a restaurant in that city. The four came here at the invitation of Valley Forward, a civic association that promotes a balance between environmental quality and economic development. Half-day programs with local businesses were held this week in downtown Phoenix and Mesa. Among the most encouraging news: Several aspects of the Valley's light-rail project received special recognition, including its phased-in construction timeline, business-assistance programs, community outreach efforts and a hotline that are now part of the Valley Metro operation. "You guys have learned a lot," commented Tony Weller, who owns a large bookstore in downtown Salt Lake City. The bad news: Stores along the light-rail route should be prepared for dramatic drops in business. Some will close. Indeed, if there was a central message the visitors had for local businesses, it was: Get your financial house in order. Take out a line of credit before you need it, before the roadway is torn up in front of your building, because banks won't be as helpful when your profits slump. But the light-rail project, once it's complete, will be good for business and economic growth in previously depressed areas, visiting executives predicted. "Our business suffered some," Franks, the Houston developer, said. "But our gain was great." "There were a lot of business casualties," added Edwards, the Houston restaurateur. "But at the end, the light rail is a great deal. It really helps businesses along the (route). The end result is fantastic." Don Matson, owner of Cap's Grill in Minneapolis, said he had opposed the light-rail project and suffered a considerable loss of business during the construction phase. But, Matson said, the project has revitalized older parts of his city with new townhouses, condominiums and retail services that follow the growth. Attitude and signage were identified as key ingredients to surviving the inevitable turndown. The more business owners and employees complain about the inconvenience and the economic losses, the worse it will be, the visitors said. Signage makes a critical difference in helping motorists to find their way to retailers, they added. The overall message? Some Valley businesses are in for some discomfort and pain. But if they can operate smartly in the interim - and Valley governments make every effort to listen to their concerns - the sacrifice and expense will pay off for everyone. _____