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Tuesday, Mar 19, 2024
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Petco’s Double Play: 1

As the San Diego Padres prepare to open their second season at their new home in East Village on April 7, residents and businesses in the ballpark district are beginning to feel the effects.

Once a part of town that was considered a blighted area, it has now become the home for 32 projects within the 26-block district, bounded by Sixth Avenue and 15th Street and Market and Commercial streets, as defined by the Centre City Development Corp., the city’s Downtown redevelopment agency. Many of the projects in the Petco Park area are mixed-use, with residential, retail and office space.

Two notable projects are the Icon and Diamond View Tower. Located on a 55,000-square-foot lot covering the entire city block bounded by J and K streets and 10th and 11th avenues, the Icon is under construction and consists of four residential towers ranging from five to 24 floors with 325 condominiums and 16,000 square feet of ground-floor retail space. Construction on Diamond View Tower, a planned 15-story building with 325,000 square feet of office, retail and restaurant space just beyond Petco’s right field area, is scheduled to start this month. Both projects are slated to be completed in fall 2006.

The total private investment in the redevelopment ballpark area is nearly $1.7 billion, according to the CCDC.

But as the projects begin to unfold, with many currently under construction and not scheduled for completion for several years, businesses in the area are feeling the brunt of the development.

Some businesses have benefited, while others have not been so lucky.

Jeff Phelps, owner of Continental Cleaners, has operated his dry-cleaning business for the last 11 years out of the 75-year-old building on 10th Avenue between Island Avenue and J Street, and said the ballpark and the construction that has come along with the new development in the area has left his business with little room to grow.

“Business is terrible. They have ruined us,” Phelps said.

The company, which is right next to several residential projects currently under construction, has lost $200,000 in annual sales for the last three years, Phelps said.

“We used to have a line out the door every day, and now nothing,” he said. “The roads are shut down because of the construction and there is nowhere for our customers to park.”

The lot next to Phelps’ business used to have approximately eight spots available to his customers but is now full of construction equipment.

“There used to be 15 businesses all around this block and now they are all gone,” Phelps said, adding that the majority of them were bought out by developers.

Continental Cleaners, which has 11 employees, has six years left on its lease, but Phelps said he is not sure the company will last more than a year.

“The rent has gone up every six months. I never thought that it would come to this,” Phelps said. “Things have changed. I have to practically give the dry cleaning away to keep the doors open. Small businesses just can’t exist here. The writing’s on the wall. It is just a matter of time.”

Phelps said he does see a future for his business if he can get through the tough times.

“The future is bright. Instead of running, we are going to stick it out,” he said.

But while the ballpark district is under construction, with many areas littered with construction equipment, the outcome of the development could be the light at the end of the tunnel for many of the businesses.

Located on the next block from Phelps, on Ninth Avenue between J Street and Island Avenue, is Caf & #233; Noir, a coffeehouse that opened in late 2003.

Unlike Phelps, Caf & #233; Noir’s owner, Gloria Poore, owns her building and was able to designate it as a historical building, alleviating many of the problems Phelps has gone through.

The business was opened as a way to maintain East Village’s funky arts scene, and not in response to the ballpark, said Eduard Glukhov, an employee at Caf & #233; Noir.


Not Worried

The coffee shop is not likely to attract many Padres fans, but Glukhov said that they are not worried about a decrease in business when the season begins this week.

“We are hoping to have a good season with the park,” Glukhov said. “But this coffee shop exists on its own and we are trying to coexist with the park.”

Caf & #233; Noir anticipates a thriving business climate within the next several years as more and more of the redevelopment projects are completed, he said.

“We know it’s a good spot and we know it will take years to grow,” Glukhov said. “People moving into all these residences will want a coffee shop.”

The company, which has four employees, has recently retained a beer and wine license in hopes of attracting some Padres fans.

Tanya Taylor, owner of Salon Identity, at 418 10th Ave., next to Continental Cleaners, said she is hopeful that as more projects are completed and more tenants move into the buildings, business will start to pick up.

“The residential development has definitely brought us business,” Taylor said. “New tenants are often walking in.”

Salon Identity, which has six employees, opened in June. The Padres’ 2004 season had little effect on the hair salon and Taylor said she expects minimal impact this year.

But April Synnott and her husband, Rich Synnott, aren’t bothered by the development and look forward to the season.

The couple have plans to open Diamond Bar, a sports bar, restaurant and special events space, on Seventh Avenue, about 100 yards from the entrance to Petco Park.

The 10,000-square-foot eatery, which is expected to open by mid-April, was the previous home of Ventanas, a Latin themed restaurant.

“We want to have a fun place where you can grab a burger, drink and people in jeans and Padres hats can feel comfortable,” April Synnott said, adding that the company will employ about 50 people.

She said that the number of commercial and retail spaces around the ballpark is beginning to evaporate as more developers are seeing the inherent value in being near the 42,445-seat stadium.

But as more people look to move into the area, space is becoming less accessible and the affordability factor is increasing, she said.


Promising Future

Leslie Wade, spokeswoman for the 40-member East Village Association, a private, nonprofit organization of merchants, owners and residents, said that in the next three years there will be a steady increase in businesses opening up around the ballpark district.

“We will see an increase in the number of restaurants, bars and retail shops,” Wade said. “Most businesses will be occupying the ground floor of housing projects and most of these projects aren’t completed yet. Right now there aren’t very many that are physically there.”

Bill Shrader, senior vice president with Burnham Real Estate’s urban retail group, said that the ballpark district has been booming with mixed-use projects, but that’s the result of redevelopment and not because of the ballpark’s location.

“It has merely been a catalyst to speed up the development,” Shrader said. “Right now there is tremendous demand from retailers and restaurants going into the area. The only thing that is holding them back is delivery of the product. There are a lot of tenants that want to be here but the space isn’t available.”

Shrader said that most of the companies that will occupy the retail space in the new developments will most likely be chains, as they are able to wait for the projects to be completed.

“Typically, mom and pops, when looking for a space, want to open right now, not two years from now,” he said.

Shrader said that Marble Slab Creamery, Subway and a Postal Annex have signed a lease at the Sixth & K Parkade, a 1,000-space parking structure with 15,000 square feet of retail space, and Palm Steakhouse, a high-end steakhouse chain, has signed a lease at Sixth Avenue and J Street.

Other businesses that recently opened up in the district are Lotus Thai, a Thai restaurant on Market Street and Ninth Avenue; Caf & #233; Chloe, a European style caf & #233; on Ninth and G Street; Mission Soma, a Latino themed breakfast and lunch caf & #233; on J Street between 13th Street and Park Boulevard; and Design Within Reach, a modern furniture showroom on Seventh Avenue in the Simon Levi Building.

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