Commercial vacancies concern some leaders

It’s quiet these days at John Le’s nail salon. Too quiet.

It wasn’t always like this, Le said. People shopping in Pepperell Corners used to stop by Today Nails. That was before Steve & Barry’s clothing store closed last year and Goody’s closed earlier this year, leaving empty space.

“It hurts,” Le said. “Most of the other businesses have moved to TigerTown. We’ve been here for more than 10 years, so we get our regular customers. But it still hurts.”

Vacant buildings hurt existing business, city tax revenues and the look of a community, Auburn and Opelika city officials said. Residents feel the pain if tax revenues from businesses that help keep up roads, parks and other city services decrease.

A full, vibrant community attracts people, said Barbara Patton, executive director of Envision Opelika, a group that has made filling empty stores downtown one of its primary goals.

“Property values go up when you don’t have vacancies around you,” she said. “The upkeep’s easier when you don’t have vacancies. It shows that your community cares. You’re growing and not staying static or going backward.”

Empty spaces often mean fewer tax dollars going into city coffers and can affect a community’s image.

“I would say without question it’s more aesthetically pleasing (to have buildings filled), even if the owner keeps the property up, keeps the grass cut,” Auburn Mayor Bill Ham said. “Just a vacant building seems to age and dilapidate faster.”

When the BFGoodrich plant in Opelika closes in October, it will leave 1.7 million square feet of warehouse and production space empty, Opelika Mayor Gary Fuller said. That space will cost the city more than $850,000 in occupational taxes annually. Sales taxes coming to the area from the current $59 million payroll will be lost. Opelika Utilities, which provides water to the plant, will probably see revenue drop about $100,000 a year, general manager Dan Hilyer said. A spokeswoman for Alabama Power said the income generated by the plant was confidential but substantial.

The City of Opelika’s Web site lists approximately 1.6 million square feet of industrial space available. Having some vacant space isn’t bad, Opelika Economic Development Director Al Cook said. Most industrial prospects are looking for something already built that can handle their needs, he said.

Auburn Economic Development Director Phillip Dunlap said his department doesn’t keep a list of square feet of vacant industrial and commercial space.

Like Opelika, Auburn is constantly looking for tenants to fill empty spots, Ham said. But government can only do so much, and it can’t stop businesses from constructing new buildings, he said.
“If they’re building on their own private property and meeting all the standards of the city, I don’t think government can say ‘Well, you can’t come here,’” he said.

In some cases, turnover is quick. Appliance Direct recently moved into the old Rex TV & Appliances building on East University Drive in Auburn. Hamilton’s on East Magnolia Avenue closed in the fall of 2008, but Donna Young, owner of the building, said the restaurant hopes to reopen. If that’s not the case, Young said she doesn’t think she’ll have trouble filling the space. “I have people calling every week,” she said.

Le hopes that’s what will happen to the vacant stores that surround his.

“I hope someone will move in soon,” he said.