In light of the recent tragic explosion on March 5th that destroyed nearly one-half of the 200 block of East Main in Bozeman, I thought it appropriate to dedicate this issue to an in-depth look at downtown and its place in our community and local economy.

How does one begin to put into perspective what downtown Bozeman means to its citizens? For each of us, it is a different set of special memories, usually involving family and friends…it is the ideal destination for a Saturday morning coffee, a warm evening walk, or the perfect place to entertain out-of-area guests. Whether it is to enjoy a top-notch meal, view stunning artwork, shop in any of the numerous specialty stores, or just be a part of the vibrant hub of Bozeman, Main Street is considered “the” place to be. The Downtown Business Association’s slogan of “Life is Downtown” seems highly appropriate. The energy of this distinct area is felt through numerous special events including the Christmas Stroll, the Art Walk series, Music on Main, and the Sweet Pea Festival, among countless others. While towns and cities all over speak of the demise of their downtown districts and the dominance of strip malls and big box stores, Bozeman has stood apart as a crown jewel by evoking community pride and setting the bar high for other areas. I think we can all agree that spending time downtown is the premier shopping experience in Bozeman, and perhaps Montana and beyond. But I would like to look a little deeper than the “experiential aspects” of the downtown shopping district and examine its progress, economic importance, and future significance. 
 
Of course, staying vibrant and retaining “destination” status does not occur without a large amount of work and forward thinking. Downtown Bozeman’s current look and feel did not happen by accident. Dedicated business owners and city and state officials have worked over the past decade to preserve and enhance the “street face of downtown”.  With the creation of a downtown “tax increment financing” district, the City of Bozeman, Montana Department of Transportation highway funds, the federal government, and other public funding sources have injected over $15,000,000 in improvements to historic downtown, including the significant construction projects over the past several summers. The water and sewer project was successfully completed. The Main Street streetscape project was completed last year, which resulted in upgrades including universal access, new sidewalks, historic street lamps, trash receptacles, pedestrian benches, bike racks, and cobblestone crosswalks. State-of-the-art traffic lights and road improvements are now in place. Soroptimist Park located at Rouse and Main received a beautiful and timely upgrade. And after nearly 10 years of planning and construction, Bozeman’s first multi-level parking garage will soon open, located one block north of Main Street between Black and Tracy Streets. The Downtown Parking Garage will contain both leased and hourly parking options for a total of 435 parking spaces. Retail and restaurant spaces will line the Garage along Mendenhall Street and Tracy Avenue. The Garage will also serve as the downtown transit station for the Streamline bus system.
 
 We should commend the courage and wisdom of those who have kept us ahead of the national curve, while other downtowns throughout the nation have fallen into disrepair and economic uncertainty. Interestingly enough, we sound like the text-book case of “revitalization”, according to the National Trust for Historic Preservation whose Main Street program (www.mainstreet.org) helps revitalize traditional commercial districts using the Main Street Four-Point Approach ™ which “is a community-driven, comprehensive methodology used to revitalize older, traditional business districts throughout the United States.  It is a common-sense way to address the variety of issues and problems that face traditional business districts.  The underlying premise of the Main Street approach is to encourage economic development within the context of historic preservation in ways appropriate to today's marketplace. The Main Street Approach advocates a return to community self-reliance, local empowerment, and the rebuilding of traditional commercial districts based on their unique assets: distinctive architecture, a pedestrian-friendly environment, personal service, local ownership, and a sense of community.” Currently, Anaconda, Butte, Libby, Livingston, Polson, Red Lodge, and Stevensville are involved in Main Street programs in Montana. 
 
One thing that sustains downtown Bozeman’s vitality is the eclectic mix of businesses you will find while walking down Main Street. Fine and casual dining choices are plentiful, including 33 restaurants, bars, pubs, coffee shops, and bakeries. Music, books, clothing, jewelry, outdoor gear, artwork, and furniture can all easily be found with over 80 different choices. Banks, architects, attorneys, and other professional office spaces are intermingled with fitness studios and spas. The vast majority of businesses are independently and locally owned, and they are successfully keeping the revenue that is spent in Bozeman in our local economy. Small, family-run retail stores and restaurants are the lifeblood of downtown’s success. According to Chris Naumann, Executive Director of Downtown Bozeman Partnership, there are approximately 200 street-level “storefronts” on Main Street with about 12 vacancies at this time, which translates to a 6% vacancy rate. Most healthy downtown environments rate about 92 to 95% occupancy. A handful of longtime businesses have recently retired or chosen to pursue their business virtually or in different locations, and therefore our current situation is a higher vacancy than we have seen in recent years. We have also added new retail space into the market in the past year with the completion of the Golden Rule Building, remodels of the Baxter Hotel, Jonathan Foote Architects, the Ellen Theater, and a current renovation of First Security Bank.
 
Attempting to put into perspective the significance of downtown’s economic impact is complicated at best. Though many of the statistics were a bit difficult to pinpoint, the overall impact becomes quite evident. According to a Montana Department of Revenue report from 2007, there is estimated to be 1,157,312 square feet of retail and financial services space available in the downtown core, from Broadway to 3rd, including some spaces on side streets.  Over 1 million square feet equates to approximately 26 acres. How can we quantify the economic impact of this area? Chris Pope of NAI Commercial suggests that a multiplier of $250-$300 per square foot could be used to estimate annual gross revenue. This range is based on a mid-size specialty retail shop in a tertiary downtown market such as Bozeman, during normal economic conditions. This multiplier would suggest $289 to $347 million in annual gross revenue/sales. According to Dr. Paul Polzin, of the Bureau of Economic Research, University of Montana, the 2002 census showed 538 retail businesses in Bozeman. The gross sales expressed in 2008 dollars (prices increased by 17.5% from 2002 to 2008) would be $1,290,733,000. Using the average multiplier of $275 per square foot of gross revenue, downtown Bozeman could represent 24.6% of the total Bozeman retail economy.
 
As you walk down “Mainstreet”, take the time to look upwards, and you can see a few of the remnants of what used to comprise downtown Bozeman in the form of faded lettering from businesses of the past. These are a handful of blocks that in the late 1800s were imperative in forming the original community of Bozeman, Montana, and which are still significant in our daily economic and cultural well-being.  All of the ingredients are firmly in place as we look to move forward and rebuild a part of history. The reconstruction process will not be simple, timely, or convenient, and it will not be without financial challenges and business interruption, but it can and will be done. Let’s reflect and reaffirm as a community that collectively we can and will rebuild and revitalize downtown. And for now, please frequently visit and generously support these local businesses that sustain and stimulate our community.
 
Robyn Erlenbush is a downtown business owner and the Broker/ Owner of ERA Landmark Real Estate (with offices in Bozeman, Big Sky, Livingston, and Clyde Park), NAI Landmark Commercial, and Intermountain Property Management. She can be reached at robyn@eralandmark.com