DOWNTOWN MIAMI
For Macy's, downtown Miami still looks a bit chancyMacy's future in downtown still isn't certain. The chairman said she needs to see a better retail environment before she will make a commitment to the area.
Posted on Tue, Jul. 01, 2008
BY ELAINE WALKER
ewalker@MiamiHerald.com
Macy's Florida Chairman Julie Greiner can step outside her downtown Miami store and see small improvements from a year ago, when she took city leaders to task about the state of Flagler Street.
Isolated beautification projects and demolition of her rat-infested next-door neighbor aren't enough for Greiner to make a long-term commitment to the area, however. A year after Greiner raised the possibility the department store might leave downtown, the future isn't any more clear.
Before Greiner will agree to renovate the store and keep it as the corporate office for Macy's Florida, she wants to see a fundamental change in the downtown environment. That's especially key in these tough economic times, when retailers across the country are scaling back.
''We need to see Flagler Street developing as a vibrant retail center to convince ourselves to make that kind of a major capital investment,'' Greiner said. ``There's no more vibrancy and quality to the downtown retail environment today than there was a year ago.''
Greiner has been saying for a year that the company's future depends on what city leaders do to improve safety and the appearance of the central business district. The leases on part of the two Macy's buildings expire in 2016.
A BIG EMPLOYER
As it is one of the largest private employers in the central business district, Macy's departure would be a huge blow.
The company's roots in downtown Miami date back to 1898, when William Burdine opened W.M. Burdine & Son at the southwest corner of Avenue D and 12th Street (today's Flagler Street). Macy's, which moved into the current location in 1912 as the former Burdines, has about 900 employees downtown, between the Florida corporate office and the store.
Since Greiner criticized the city for ''broken curbs, collapsed sidewalks and garbage-strewn empty lots,'' there have been efforts to spruce up downtown. The Downtown Development Authority started an ambassador program to help deter crime and guide visitors. People are moving into some of the condos. Police presence has improved, although Greiner says that tends to ``ebb and flow.''
Some city leaders believe the solution could end up with Macy's moving to a new location, but still downtown.
''Unless there is a major transformation in West Flagler, there is a legitimate question about whether that is the best retail destination for major retail,'' said Neisen Kasdin, vice chairman of the Downtown Development Authority. ``There may be better places for retail on Biscayne Boulevard and Brickell Avenue.''
While Greiner says that in the last year she's established a dialogue with Mayor Manny Diaz and leaders of the Downtown Development Authority about the future, she doesn't see enough proof that the majority of downtown property owners are willing to put their own dollars behind improvements.
`NO EVIDENCE'
''We're hoping others share this vision, but there's no evidence that is changing today,'' Greiner said. ``The property owners have to drive a different level of retailing here, which would drive a different level of traffic and customers.''
In downtown's defense, there are pioneers trying to raise the profile of the area, although they are the exception, not the norm. The new breed includes retailers like La Epoca, Morays Jewelers and Churchill's Barber Shop, as well as restaurants such as Soya E Pomodoro, Bali Cafe and La Loggia.
Some of these tenants are frustrated that Macy's, downtown's anchor retail tenant, isn't leading the way toward change by improving the quality of its own building and merchandise.
''How that building looks does severe damage to perceptions of downtown Miami,'' said Jose Goyanes, owner of Churchill's Barber Shop and Metro Beauty Salon and a DDA board member. ``It's time they also step up to the plate.''
FOR EMPLOYEES
Greiner says she's focusing on doing things that benefit her employees. Macy's is renovating and upgrading the security in its downtown corporate office and has painted the outside of the building.
City leaders want her to do more.
The Downtown Development Authority wants Macy's to improve its Flagler Street storefront. Government agencies would offer Macy's incentives that would cover a large part of the costs for facade improvements and replacement of the shutters that block store windows after closing time.
The hope is that Macy's will agree to put up clear shutters that would allow evening strollers to window shop after hours.
''It's about creating a general feeling of openness and welcoming,'' said Alyce Robertson, interim DDA director. ``I do think when you make an area look better at night, people feel safer to be there.''
While Greiner says she's ''entertaining'' the shutter program, she thinks city leaders are focusing too much on something that has no effect on customers shopping in the downtown area.
COSMETIC ISSUE
''It is a side issue and a cosmetic issue that doesn't solve my main concern for my business,'' Greiner said.
Instead, she would prefer that city leaders find ways to attract tourists off cruise ships and get property owners to upgrade the type of retail tenants.
Greiner won't reveal when she must make a decision about Macy's future downtown, but those familiar with the deal say the next year is critical in convincing Macy's of the area's vitality.
''I think over time we'll earn her trust,'' Mayor Diaz said.
While Macy's hopes to ultimately keep the store and corporate office in its current location, Greiner says she will continue to explore other downtown options.
''We are actively entertaining opportunities as they present themselves to us,'' she said.
``We still want to stay here. We just need to have an environment that is conducive to our success.''