appendix a economic analysis 60
Some communities mindful of intra-regional competition have emphasized parks and open space with a very limited number of restaurants and retail outlets for new town centers. Other communities have focused on a more intensive mix of retail outlets and restaurants. Choosing the mix that will succeed for a community and investors requires careful assessments of regional market conditions. It is also important to underscore that both strategies (green space and limited retail development v. a mix of more extensive retail operations and restaurants) can both be quite successful. 1
A mix that elevates the availability of open or green space has also succeeded in anchoring a desirable mix of new residential development (single family homes as well as townhomes and condominiums). This point may be particularly important if it was determined that there are limited market opportunities for restaurants and specialty stores in New Albany as a result of nearby competitors. If the regional market is saturated with regard to retail development there are still development options for the village center that emphasize open space with a smaller retail footprint that could be the best policy course for New Albany. Other areas have succeeded in creating new retail/ restaurant destination centers that attract residents, create jobs, and improve the local tax base. ...the population that is likely to live in upscale cluster homes and throughout New Albany has the exact demographic makeup that will appeal to restaurant owners. With a growing interest in innovative chefs, neighborhood based, higher quality restaurant venues, and family restaurants are quite popular. A village center location in New Albany could be a favored and profitable location. Not being part of a lifestyle center or mall creates a certain cache for some restaurants. 2
At the current time there are approximately 351 residents per retail boutique store in New Albany and this density is lower than that found for every other retail area and comparison city (for which data were available). The only exception involved Chagrin Falls, Ohio. The town center in Chagrin Falls, however, has succeeded in becoming a regional destination and benefits from the driving times to other retail alternatives. The nearest life-style center is a 25-minute drive from Chagrin Falls and its higher levels of traffic create a distinctively different market “feel� and as a result a niche market has been created and sustained.
The data sets consulted indicate that New Albany has 13 different types of boutique stores. There are some boutique stores in other residential areas that are not present, and while that might appear to create an opportunity, such an investment would seem to require a great deal of confidence that a distinct and loyal market base of customers could be secured. This observation is made even though it must be tempered by the higher home values in New Albany and the resulting probability of more disposable income. Yet the proximity of the two large regional malls and their higher traffic levels still suggests that a challenge would exist for any new retail establishment. The New Albany market offers cautionary support for the potential addition of two to four restaurants with at least one having a family focus. If a family focused restaurant that was different from a fast food operation could not be established then it would be best to add one to three additional restaurants. The price point review suggests a more upscale restaurant is needed to advance the identity of the village center. There is far less reason to believe that there is potential for the expansion of retail space. Success for a new retail operation would be far more dependent on an existing client base or specialty niche that would find the New Albany location to be an asset and particularly attractive.