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When the next wave wipes out (De-gentrification)

PukeGreen

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There's a bit of an interesting article in IHT (and probably the NYT, too) about a receding tide of gentrification in some US neighbourhoods. The cool coffee shops and specialty shops are going under in the recession, leaving new residents surround by only the very uncool businesses that existed before. While some of these people seem due for a bit of a reality refresher ("let their children play with the handmade wooden toys in a Scandinavian-style coffee shop, Swork") I don't think this trend is good for anyone. Hopefully we won't see anything similar in Toronto...


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When the next wave wipes out
International Herald Tribune
http://iht.com/bin/printfriendly.php?id=20473708
By Scott Timberg
Friday, February 27, 2009

LOS ANGELES: When Emily Cook, a screenwriter, bought a house four years ago in Eagle Rock, a neighborhood on the Northeast side of Los Angeles, she fantasized what the area might look like in a year or two, with cafes and boutiques replacing tattered old businesses. "It was like fantasy football," said Cook, 38, who also sings in a band named Fonda.

A sad flower shop on the corner, she thought, could become a miniature Whole Foods. An upholstery store could be a gastropub where she and friends would grab a beer, and a neglected 1940s diner could become a retro spot for a quick meal.

But Cook has stopped fantasizing about what might be, and started worrying about what might shut down. The flower store has closed; no gourmet market is moving in. Lucy Finch, a vintage boutique, folded last month. That Yarn Store, a hangout for crochet-heads, didn't survive a bad winter.

And what will become of the storefront that once housed Blue Heeler, which sold Australian imports?

"Please don't make it another martial arts studio," Cook pleaded. "What is it about Eagle Rock and martial arts?"

The deep recession, with its lost jobs and falling home values nationwide, poses another kind of threat: to the character of neighborhoods settled by the young creative class, from the Lower East Side in New York to Beacon Hill in Seattle. The tide of gentrification that transformed economically depressed enclaves is receding, leaving some communities high and dry.

For long-time residents, the return to pre-boom rents may be a blessing. But it also poses a rattling question of identity: What happens to bourgeois bohemia when the bourgeois part drops out?

Over the last five to six years, Eagle Rock became the glamour girl of Northeast Los Angeles, a crescent where the asphalt jungle meets the foothills. The neighborhood of 35,000 or so has attracted screenwriters and composers, Web designers and animators, who labor on their laptops in cafes, discuss film projects at Friday night wine tastings, and let their children play with the handmade wooden toys in a Scandinavian-style coffee shop, Swork.

It is easy to sniff at such urban affectations. But the downturn endangers more than precious shops; residents worry that as stores close, the fabric of a bohemian utopia — with its Jane Jacobs mix of commerce and public spiritedness — will also unravel.

Less than a decade ago, Eagle Rock was an unlikely candidate for gentrification. For decades, students at Occidental College — who have included Luke Wilson, Ben Affleck and Barack Obama — complained to friends that there was nothing to do in their college town.

Tracy King, a real estate agent, said that when she moved to the neighborhood in 1983, "there were 79 auto-related businesses on Colorado and Eagle Rock Boulevards."

But as housing prices rose, bohemia expanded beyond the Los Angeles neighborhoods of Venice on the Westside and Silver Lake east of Hollywood. Eagle Rock filled with parents needing a place to roost. Hair salons with monosyllabic names like Loft quickly followed. Density increased, and so did foot traffic; shoppers could walk from store to restaurant to bar.

Real estate followed the national boom: a three-bedroom house in Eagle Rock that sold for a median of about $260,000 in 2000 more than doubled to $620,000 in 2005, before slumping a bit (to about $570,000) over the last year.

As the population changed, so did the culture. Jeff Tritch, 53, has worked for decades at his family's store, Tritch Hardware. He wears plaid shirts that likely pre-date Nirvana.

"Back in the '70s," he recalled, "the guys had 9-to-5 jobs and would only come in on the weekends. People nowadays come in all times. They have different kinds of jobs — on the Net, in the entertainment business. We don't have that Saturday rush anymore."

The new residents brought prosperity and, the locals say, a little arrogance as well. "They sounded the trumpets and announced a vision of something like Silver Lake or Los Feliz," said Bob de Velasco, who runs Commercial Printing Network, a copy shop. "But it's not going to happen. Eagle Rock wasn't meant to have that. Eagle Rock is an old-fashioned, atmospheric town."

Indeed, in this downturn, De Velasco's printing shop doesn't seem to be hurting, nor is Tritch Hardware. The shops at risk are the ones playing the Decemberists in a continuous loop.

"Some of them tried niche things," Tritch said, with no gloat in his voice. "That didn't work out."

Kelly Witmer, 38, the owner of Regeneration, a retro-design shop that opened in 2006, looks exhausted by the drop in business. She recently rented out half her space to keep afloat. "It seems a little slow in Eagle Rock right now, in spite of people saying it's the next big thing, or the new Silver Lake," she said. "At least on my side of the street, there's not a lot of foot traffic."

Eagle Rock is less dependent on the film industry than Hollywood or the Westside, but film industry cutbacks haven't helped. "Eagle Rock is full of set decorators and assistants and film music editors and actors," said Craig Powell, who opened Pollen Botanical Design in 2006.

If an actors' strike materializes, these Hollywood types are exactly the people who will stop spending. Shannon Bedell, 37, who closed Blue Heeler, the Australian contemporary design shop, had counted on customers willing to shop locally as a matter of principle. "What do you call them now — they're not yuppies anymore, they're affluent 30-to-45 people who were new to the area but wanted it to be a neighborhood," she said. By any name, they've changed their shopping habits.

In bad times, neighborhood idealism can be compromised with one trip to Wal-Mart. In terrible times, idealism goes the way of that baby boutique that just tanked.

"The problem is this," said D. J. Waldie, a historian of Southern California, "if we truly believed that patronizing these places enlivened our neighborhoods, why aren't we there — eating the omelets or shopping at the boutique?"

"Those places are important — they dissolve some of the cruel anonymity of everyday life," he said. "They're part of the equation of making the local real to us. But they're not the whole equation. They're not enough."

Waldie added: "I've got enough handmade soap. I don't need anymore."

It is hard to think of many on-the-verge neighborhoods that, historically, have been able to stay on the edge. In New York, SoHo and Greenwich Village aren't the artistic havens they once were. And other neighborhoods, promising to be the next best thing — well, the "next" never arrived.

"Neighborhoods go through what you call a sweet spot," said Joel Kotkin, author of "The City: A Global History," who is a critic of some forms of gentrification. "It's safe, it's a nice place to live, it still has unique shops and hangouts."

But this mix rarely lasts forever. "The ecosystems of these neighborhoods are very fragile," Kotkin said. "Over-stimulation, and, in a recession, under-stimulation, and you have dangers."

Powell of Pollen Botanical Design serves on Eagle Rock's neighborhood council and predicts that as many as six businesses of the two dozen or so that make up the new Eagle Rock could close soon. "What do you lose?" he said. "Character, ambiance, originality, creativity, edge. We're the interesting ones — the unique boutiques. We're the flavor, the salt in the food."

Or maybe not.

Christian Lander, 30, who jeered the pretensions of the creative class on his Web site, Stuff White People Like, lives a few miles to the west of Eagle Rock and says things will be fine — better even. "The economic downturn is good for fringe neighborhoods," Lander said. "It returns the neighborhood to the people who consider themselves to be real residents."

Indeed, Eagle Rock will probably return to being a neighborhood whose best qualities are well-preserved homes, old-school pizza and a really good hardware store.

But the ability to walk from place to place — which took years to build — could disappear. The cityscape will be dominated by Walgreens and muffler shops. Occidental students will again complain that there's nothing to do.

It would return, that is, to being a Los Angeles version of flyover country. And its residents would live a different life than they expected.

Jen Verti, 33, a publicist at the ABC Family channel who lives in Eagle Rock, is using grocery-store coupons for the first time in her life. "I think we've been more cautious," she said.

Apryl Lundsten, 38, who helps run a podcast, Eagle Rock Talk, said she dines out less since her husband lost his job as a television writer. Now, they are more likely to get together at friends' homes with food from Trader Joe's.

For her part, Cook, the screenwriter, has given up her neighborhood shopping fantasies. "When we first moved here," she said, "I wanted it to be cool. But that stuff doesn't matter anymore."

She still likes Eagle Rock and jokes that she can even make peace with the martial arts studios. "I'm thinking," she said with a smile, "of taking it up."
 
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"Jane Jacobs mix" sounds like something I might find at The Big Carrot.

Talking of which, as the downturn gathers momentum I expect we'll see more yuppies buying the expensive organic granola ... and writing the number of the cheaper version on the twist-tie, to save a buck or two at the checkout.

;)
 
When it comes to Roncy, Pollock's Hardware will survive the pretenders. (I suppose.)
 
Interesting article. After visiting LA I thought, at least from an outsider perspective, that LA's gentrifiers had rapidly dispersed into dozens of neighbourhoods without forming enough of a critical mass to sustain their community.

This is quite different from New York and Toronto-style gentrification, where bohos tend to move en masse to one neighbourhood, establish a beachhead (usually a watering hole) and then remain there until enough of their presence tips the area solidly in their favour before colonizing another spot further on.
 
There could just as well be a message that in the face of crisis in general, bohos and gentrifiers just aren't a very strong critical mass. And in the event of a nightmare scenario of an Obama assassination + Civil War II, they'll be but marginal mice indeed...
 
... though the bohos, being closer to the earth, will have a better chance of surviving in that hardscrabble world when everything goes to ratshit and we're all reduced to digging beneath the permafrost for a few roots and grubs to eat.
 
As we say in New Brunswick, "Put the turnip down, mister, and back away slowly. No one has to get hurt here today".
 
Recession toppling businesses in Beach

Hmm, here we go. Similar topic, Toronto-centric:

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http://www.thestar.com/news/gta/article/598689

Recession toppling businesses in Beach
Retailers urge residents to shop local as number of empty stores on rise along Queen St. E.
Mar 09, 2009 04:30 AM | Patty Winsa | STAFF REPORTER

The signs that the economic tsunami has hit the Beach are everywhere.

Empty storefronts along the Queen St. E. strip are littered with "for rent" and "for lease" signs. Mournful notes from former business owners are taped to inside windows, thanking loyal customers for their support. One, in the window of a women's apparel store that closed after 16 years, exhorts residents to "shop local. The small business owners need your support more than ever."

Cathy Norman, former owner of Wisteria Way and the author of the goodbye note, says bad weather, a lack of parking and high rent contributed to the downfall of her business. The recession created the perfect storm.

"I've seen a lot of changes in Beaches' businesses over the years, but this is the worst," says shoe retailer Janice Burden. Business at her shoe store, Nature's Footwear, was down 40 per cent in February.

"It's actually scary out there," she says, referring to the numerous rental signs.

Deborah Etsten, executive director of the Beach Business Improvement Area, noted that some retailers don't traditionally survive winter, when business is as bleak as the surrounding landscape.

"But this year, the recession has hit even harder. We do have a lot of empty storefronts."

The traditionally high-rent area, which stretches from Lockwood Rd. east to Neville Park Blvd., isn't the only area in the city where retailers are failing.

"Every main street retail area is undergoing some stress right now," says John Kiru, executive director of the Toronto Association of Business Improvement Areas.

Some midtown BIAs report four to seven businesses going under a month, he says. "That's significant when you've got a group of 100 to 150 businesses."

As Denise Azzopardi unpacks children's clothing in her Queen St. E. store, Babes, she acknowledges business is down. But she is luckier than the tenant who took over her old space, near Wineva Ave., when she moved her store closer to Woodbine Ave. four years ago.

That retailer, upscale children's store Funky Baby, has gone under, as has Azzopardi's neighbour, Nevada Ristorante, one of three restaurants to close since December.

Having already survived two recessions, Azzopardi says her strategy is "to sit tight." She expects to survive because "people buy things that they need now and we're an everyday store."

Burden also expects to weather the storm, thanks to faithful customers who have been coming to the store since her mother founded it in 1978. That loyalty was earned when customers would come up short and her mother would say, "Come back and pay the next time."

As she points to her fully stocked store, with hundreds more pairs of Birkenstocks than the 12 her mother first started with, Burden says: "I just hope my good clients will continue to come in."

It's those local clients who will ultimately help keep their neighbourhoods strong, says Kiru.

"The reality is, how the main street goes in these areas, so goes the rest of the neighbourhood."

Unoccupied retail strips aren't deemed to be as safe, he says. "In the long run, if those stores close, and there are vacancies on that strip, the value of their homes will reflect that."

The Beach BIA has been running a "shop local" campaign for a year.

"If people want us to stay, they had better come down," says Azzopardi.

Norman, the former owner of Wisteria Way, is hopeful the neighbourhood will make a comeback.

"It's a great location and I've had years of tremendous success," says Norman.

But, she warns, "landlords have to take a serious look at lowering the rents or they're going to see more of this."
 
Cathy Norman, former owner of Wisteria Way and the author of the goodbye note, says bad weather, a lack of parking and high rent contributed to the downfall of her business. The recession created the perfect storm.

The demented lament of an urban retailer: "If only I were in a strip mall!"
 
Took a stroll along that stretch (an area I've never liked anyway) with my wife and friends about a month ago, and was quite surprised at how shabby that area is looking these days: graffiti everywhere, shabby storefronts, trash and litter strewn about, and of course the ever-ubiquitous postering of spam that I don't remember being as widespread there as it is in most of the core, which inevitably cheapens the look of the area further (as it does everywhere it's tolerated) and adds to what seems to be signs of decline there. Well, serves some of those businesses right to go under for being so negligent and complacent. Don't care too much for the smug locals either, so if their house prices go into the crapper after the Queen stretch gets worse, feh, karma's a bitch...
 
Rising rents along with vacancies, and nobody raising an eyebrow. Pollyanna's!
 
Well, it *technically* hasn't happened yet, but we will in a few months. So we call ourselves husband and wife anyway :D

Thanks HD.
 
It probably doesn't help that many of the storefronts (esp. west of Kew Gardens) are technically "shabby" to begin with: add-ons, etc. Oh, charming, until they empty out...
 
I think Christian Lander said it best:
"It returns the neighbourhood to the people who consider themselves to be real residents."

Of course, especially here, how long would it be til it just gentrified again? This is assuming a complete de-gentrification.
 

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