posted by chicago pop

Mystique Boutique's New Location, 1503 S. Michigan
Let's just start with a few facts, gleaned from the most unlikely of places: the "Shopping" feature of the
Chicago Tribune's "At Play" section (Thursday, September 27, 2007). It turns out that shopping advisor Ellen Warren, curious to know if the boutique scene in South Loop had yet to blossom, found that it had. And guess what? Several of the distinctive new South Loop boutiques are businesses relocated from Hyde Park.
What does this tell us about small business? 1) Businesses go where the shoppers are. 2) There aren't enough shoppers in Hyde Park. What does this tell us about Hyde Park politics? 1) Chains are not driving the mom and pops out. 2) The mom and pops are leaving the neighborhood because there aren't enough customers.
Why aren't there enough customers? Because Hyde Park NIMBYs don't want to let more people (i.e., shoppers) into the neighborhood -- just ask
Jack and Jill. What may have been a tolerable business environment for a Hyde Park businessperson 10 or 15 years ago is now an insane opportunity cost, given the explosion of new households just a few miles to the north. Despite the many and obvious attractions of the Harper Court business dynamo, they are evidently not enough to distract local entrepreneurs interested in turning a profit.
Mystique Boutique, a Hyde Park mainstay for 22 years, moved to 1503 S. Wabash a few years ago, leaving us, as a reminder, the wonderfully prominent vacant storefront at 53rd and Hyde Park Boulevard.
Downtown Pets, at 1619 S. Michigan Avenue, is another small business refugee from Hyde Park. The neighborhood obviously generates business talent; but it's talented enough to know not to stick around.
Why is this so? Two letters to this week's
Herald (Wednesday, September 26, 2007) allow us to perform a sort of thought experiment, artificially creating the business psycho - ology of the neighborhood, allowing us to see what might discourage small local businesses from putting up a shingle here.
Mr. Gregory S. has a project to preserve and restore the historic Rosenwald Apartments on 47th Street. The problem is, he doesn't know how to pay for it. Solution? Find someone with lots of money to invest in the area. "Allowing it to crumble and decay is absurd and a real waste of what should be a great investment opportunity for someone with capital."
I agree completely. The only problem is, with the exception of Mr. S., not everyone in Hyde Park is equally enthusiastic about promoting "investment opportunities for someone with capital."
Take, for instance, a quite detailed letter from one Mr. William A. Knack, who feels that, "If Harper Court is to be redeveloped, let's do it right." Thereupon follows a
14 point list of stipulations as to just what a Harper Court redevelopment proposal should include, with tips on everything from including senior housing at the site, getting a movie theater back into the old Hyde Park theater, and telling McDonald's to get lost.
Now let's imagine Mr. Knack's 14 points getting written into the Request for Proposals that will be used to solicit Mr. S.'s "someone with capital." Ready, set, go.
I don't hear anything happening ... do you?
Exactly. Who would be crazy enough to take on the redesign of an entire neighborhood for the sake of getting their hands on some iffy real estate in Hyde Park, when the neighborhood can't even retain its home-grown entrepreneurs?
The solution is ultimately very simple. More people need to live in and around Hyde Park. There just aren't enough people here to support local merchants, and the ones who live here now are small spenders, spending below the national average in just about every category (see
Lifestyle chart of spending habits by area code).
There are two ways to change this. Either 1) bring in
lots more households that earn below or equal to the neighborhood's average per capita income range of approximately $35-40,000 (as of 2000 Census), or 2) bring in fewer people who earn
above the neighborhood's $35-40,000 average per capita income. Either way, there need to be more people with pocketbooks. Bringing them in will only add to the diversity that the neighborhood supposedly cherishes.