Crescent-News.com - Area sites ready for new business

By JARED ORZOLEK

Names like Old Navy or T.G.I. Fridays might bring a smile to Defiance-area residents dreaming about the next store or restaurant to come to town.

But it's demographics -- factors like the population of the area and the age, income and education level of the residents -- that are the primary factor considered by prospective retailers.

"The retail side is heavily based on demographics. That goes for restaurants, too. They search for a location where it will be profitable," said Isaac Lee, assistant director of Defiance County Economic Development.

Demographics are front and center for businesses thinking about setting up shop in the Northtowne Mall, echoed mall manager Teresa Page.

She said many retailers use the Internet to check out figures like the population and income of area residents. She said many determine the area falls short in terms of population and decide now is not the right time to open in Defiance.

"It's tough right now, it really is," Page said, explaining that officials are constantly working to fill the storefronts inside the mall. "We have to increase the population here."

The need to bring more people to Defiance to boost the retail scene is not lost on local agencies.

Lee said economic development officials focus on bringing commercial and industrial businesses to the Defiance area in order to boost the population and make the area more attractive to retail business.

Two factors that should boost local development opportunities are the U.S. 24 Fort-to-Port project and the Clinton Street improvement project.

The U.S. 24 project has already provided a four-lane highway from east of Napoleon to the Indiana line and promises to provide four lanes of traffic from Fort Wayne to Toledo in 2012.

"We are located right between Fort Wayne and Toledo. We will be considered a midpoint," said Lee.

The $11.6 million Clinton Street improvement project will widen the road from U.S. 24 to Defiance College, creating left turn lanes and a concrete median dividing traffic.

Street construction will take place through August and the overpass over U.S. 24 will be closed for five months starting Monday as the bridge is expanded from the existing two lanes.

"After it's done it will be great, but it's going to be tough in the meantime," said Page.

Defiance has space ready for new retail or restaurant projects that could spring up as these projects provide more opportunities, according to Lee.

The former Kmart building, which was recently sold to a Toledo real estate developer, is one spot a retailer could consider. He said stores could also consider new construction along Stadium Drive or seek out other city locations.

One local town that has seen recent success in business development is Napoleon, where a downtown food store and restaurant have opened and a national chain store has announced an expansion project.

Stimmel's Market, located at the southwest corner of Perry and Washington streets, recently returned to Napoleon after closing down for nearly a year. The store has expanded to include a bar area and the project was a key component of a series of investments in downtown Napoleon that allowed the city to obtain a $400,000 grant from the Ohio Department of Development.

Also in Napoleon, Rite Aid stores is working with local developer Napoleon I LLC, to build a new store at the southwest corner of Scott and Lagrange streets. The developer has already been allocated a series of tax abatements and grants from the Henry County Community Improvement Corporation (CIC) in connection with the project.

Rite Aid has worked with the CIC and Napoleon city officials for nearly two years on the project as the economic recession has made financing the project difficult. Construction has not started on the project, but could begin later this year.

Joel Miller, executive director of the Napoleon/Henry Chamber of Commerce, said organizations like the chamber, CIC, city and others must work together to help businesses projects like these take place.

"In a smaller community like Henry County, everyone has to work together and have a plan," Miller said. "Resources are short for businesses and resources are short for economic development."

Miller explained that in tough economic times each community has businesses that are doing well and others that are struggling. He said it's up to local organizations to do what they can to help the situation.

He sees signs that economic development activity could soon increase. He said in the last six months he has seen a spike in businesses researching Henry County.

"A lot of it involves businesses that are trying to determine what do ," Miller said. "It's a good sign to me."