Category Archives: Business

Business in Newburyport, MA

Stephen Karp and Downtown Newburyport

I don’t like surprises. And even though the outgoing Chamber of Commerce president advised me not to pre-stress over Stephen Karp’s plans (in particular chain stores) and to take a wait-and-see stance, I just couldn’t be so patient. So I did a little more research and this is what I found out.

The style of development Mr. Karp champions is called “lifestyle centers.” In an article published in the Boston Business Journal titled “Karp talks retail development, little about Fan Pier.” (October 29, 2004) I learned that retail development, as we’ve known it, is no longer a massive complex on a large track of land accessible only by car. The new design is aimed at developing retail “hot spots,” that look like urban open-air cityscapes and they’re popping up all over the place. The article lists several Karp projects and which market the “hot spots” are geared to.

“…Places such as Plymouth, where Karp is nearing completion on the first phase of a 500,000-square-foot center, and Leominster, where he has proposed a 475,000-square-foot retail center, are being transformed into retail ‘hot spots.’

While lifestyle centers won’t replace regional malls — the developments are an alternative, said Karp — there are few new malls being built these days for lack of available land.

Enclosed malls have high operating costs and need to be built big enough to accommodate two department stores to cover costs.

Lifestyle centers, which Karp said are easier to build, offer the same amenities as malls but are geared toward people with high incomes.”

After reading the article I began to think how naive all of us are. Our downtown is, for all intent and purposes, owned by one retail developer whose primary objective is to create a “lifestyle center” that serves the affluent. The parking issue on the Waterfront?- it is my belief that it is not going to end in anything that will serve the current residents of Newburyport. The likelihood of a senior center being built anywhere downtown? It is my belief that it is not going to happen.

Look what’s happening in Nantucket. There are numerous articles written by the “Nantucket Independent” that document the painful demise of a community and the building of a commercial empire. Take this for example from an article dated January 4, 2006.

“Yesterday, the Fee family announced that it will not reopen its downtown business following 37 years on Steamboat Wharf. In another blow, the Nantucket Cookie Company, owned by Andrew and Donna Fee and run from the Henry’s kitchen, is now for sale for lack of a new location.”

Another short article dated February 1, 2006 reports the closing of a thirty-one year old art gallery. The closing scenario went like this:

The Spectrum leased the building for 31 years. After Karp purchased multiple Nantucket commercial locations last year, Spectrum co-owner Bud Heidebur was approached by Wyner (Henry Wyner, leasing agent for Karp’s Nantucket Island Resorts company) who explained that another party was interested in paying a significantly higher rent than the Spectrum was being charged.

Heidebur and his partners decided they could not afford to spend that much and closed the local store after its lease ended at the first of the year.

How many scenarios like these are being played out right now in Newburyport? My guess would be many.

So now I know – no surprises. It looks like there could be parking on the Waterfront -ramrodded down our throats by the Mayor and the people who will benefit the most from more commercial space. It looks like there could be larger upscale and chain stores where there are modest sole proprietor shops. And it looks like there could be a pseudo downtown that’s more like a outdoor mall than a community center that serves its city residents.

Allyson Lawless
Newburyport

Newburyport, Wetlands

Well, I’m learning about wetlands. I’ll have to admit, even though I’m a Liberal Democrat, I’ve never quite gotten quite what all the whoop-la was about wetlands thing until recently.

My wetlands learning curve has been due in great part to people who one way or another have been connected to the Newburyport Political Blog. So a big “thank you” to all of you out there in web-land that have added to my wetlands education.

Basically, what I now get is that wetlands are like a big sponge that absorbs the water that would otherwise flood us.

So in the big flood this spring, Newburyport, even though it is on the Merrimac River, was largely sparred the enormous damage that other communities further up the river incurred. It was spared because of our marshes/wetlands. All that water spread out instead of up and was absorbed by all those marshy, wetland bogs.

So now I’m even a bigger fan of marshes than I was before. And as a painter, I’m a very, very big fan of Newburyport’s marshes.

So, the wetlands around the Little River, down around Low Street, act like a sponge during large, flooding rains. Ok, now I’m beginning to get that.

I’m also beginning to get that it’s not a good idea to fill those wetland/sponges up with cement, because then they cannot absorb all that water anymore. And that it’s also not a good idea to have a whole lot of cement around those wetlands, because all those hard surfaces act like a funnel, and it’s just too much water for the wetland/sponges to absorb.

And if we fill those wetland/sponges up with cement or have too much cement around them that means among other things that Newburyport’s Industrial Park will flood on a regular basis. And if Newburyport’s Industrial Park floods on a regular basis, no one is going to want to have a business there (who could blame them.) And if no one wants to have a business there, then we Newburyporters are in big trouble, because we need those businesses to help our tax base.

So, for a whole lot of reasons, including the wetland/sponge reason, it would be a really, really bad idea to have that large 40B project on the Woodman Property on Low Street.

So, now I’m beginning to get it, that preserving Open Space isn’t just for the “touchy-feely,” “crunchy-granola” folks. Preserving Open Space, especially around the Little River, is important to everyone. Including those folks who very much want to keep business in Newburyport, Massachusetts.

And one of the things that really helped me is the link which shows the Little River Basin during the recent floods. As Marlene Schroeder, who sent in the link in to me said, “a picture is worth a thousand words.” If you haven’t seen this map, I think it’s really, really interesting.

Mary Eaton, Newburyport

(Editor’s Note: Unfortunately the very excellent site www.cebport.org is no longer up.)

Newburyport, Chain Stores and Local Businesses

Hi Mary,

I just thought I’d bring you up-to-date on my research concerning the impact chain stores have on communities and why local business ownership needs our support.

As you know, I became interested in the issue when Nantucket recently adopted a “Formula Store” ordinance. I have discovered, Nantucket is not unique. In fact, communities all over the country, in the mountains, by the seaside, in the Mid-west, have adopted similar zoning regulations. Some of these efforts have been in response to a proposed “big box” development project, such as a Wal Mart or Home Depot. Other efforts were born out of the desire by local business owners and residents to maintain the neighborhood character of their business district, as is the case in Nantucket.

I’ve spoken to a couple of people in town who hold community policy roles. By and large; folks are in a “wait and see” mode. However, they do concede they have a more than passing interest in the Nantucket ordinance and are open to learning more. So in the spirit of self-education and openness, I’d like to offer the following list of benefits most frequently cited for supporting local businesses and limiting chain stores. I hope you and your audience find it informative.

Why support local businesses?

1) Local Character and Prosperity
In an increasingly homogenized world, communities that preserve their one-of-a-kind businesses and distinctive character have an economic advantage.

2) Community Well-Being
Locally owned businesses build strong communities by sustaining vibrant town centers, linking neighbors in a web of economic and social relationships, and contributing to local causes.

3) Local Decision-Making
Local ownership ensures that important decisions are made
locally by people who live in the community and who will feel the impacts of those decisions.

4) Keeping Dollars in the Local Economy
Compared to chain stores, locally owned businesses recycle a
much larger share of their revenue back into the local economy, enriching the whole community.

5) Job and Wages
Locally owned businesses create more jobs locally and, in some sectors, provide better wages and benefits than chains do.

6) Public Benefits and Costs
Local stores in town centers require comparatively little infrastructure and make more efficient use of public services relative to big box stores and strip shopping malls.

7) Environmental Sustainability
Local stores help to sustain vibrant, compact, walkable town centers-which in turn are essential to reducing sprawl, automobile use, habitat loss, and air and water pollution.

8) Product Diversity
A multitude of small businesses, each selecting products based, not on a national sales plan, but on their own interests and the needs of their local customers, guarantees a much broader range of product choices.

Allyson Lawless, Newburyport

Newburyport, Development and Greed

I have this horrible feeling, having gotten a phone call from a developer (see earlier post) that developers actually are reading this blog to get information about Newburyport.

I figured it would basically be a local readership, but apparently not. According to the email I received, I am apparently “reaching the masses.” This is not necessarily a good thing.

So I was thinking, Ok, what if I was a developer and I was reading the Newburyport Political Blog, what would it sound like from their point of view.

Well, we have Mr. Karp as a landlord, not exactly small potatoes, so that must mean it’s a pretty good place to invest in. They were picking up that I wasn’t exactly too happy with the mayor from a policy point of view. And if you read the Newburyport Political Blog, there is a lot of chit, chat about how the mayor sure does sound like he is pro-developer. And we have a very pro-active, pro “smart growth” planning director who’s been fired.

When I think about the Newburyport Political Blog from that perspective, Newburyport must sound like a developer’s playground. No wonder there was a (most probably a lot more than one) developer from out of state sniffing around our small, historic, seaport city. Makes me feel sort of ill.

This brings me to the subject of greed. How many people in Newburyport are there out there, if a Target came to town, if they could make mucho money, would jump at it, integrity of Newburyport be damned. Of course it would be called tax base first, being fiscally conservative, Newburyport’s best interest at heart, jobs for one and for all.

Money, lots and lots of money, does very strange things to folks. We’ve all seen it happen again and again. Yes?

Mary Eaton, Newburyport

Newburyport, Waterfront West

In response to Ben Laing’s post, I do not have a Ph.D. in zoning or planning and development, a real amateur here, but as I understand it, the zoning overlay for Waterfront West is to provide the City of Newburyport with some protection for that area.

My understanding is that Waterfront West is the area west of State Street that contains such things as the Fitness Factory and Michael’s Harborside.

The goal is to try and make sure that the land is developed properly and matches the rest of the City of Newburyport, using State Street as the model.

And I think a lot of people in Newburyport share Mr. Laing’s unease about Stephen Karp. (That’s why we need to keep Nick Cracknell as Newburyport’s Planning Director–see earlier post.)

Newburyport, David Hall a Great Example of a Thoughtful Developer

In another response to Ron Martino’s post, David Hall, of Hall and Moskow, is a great example of someone in the community who has combined the old with the new.

David has also won the trust of the community.

David Hall has done an incredible amount for historic preservation–the gallery for the Art Association and moving an historic building that was on his property to another site are two examples. He has the well earned trust of people in town who value historic preservation.

He has also been working on the Rail Trail for years and managed to raise the money as well as help build the Skate Park at the Newburyport Nock Middle School.

I think part of why David Hall has been so effective is that he also appreciates and respects all the work that the City boards and commissions do. He has his ego in check. He works well with the Planning Office and enjoys them. And has had, I think, a pretty good relationship with various city councils and administrations, partly because of his easy going personality, and partly because all of the variety of ways that he has enhanced life in Newburyport, Massachusetts.

David Hall has built, what I consider to be a beautiful new building at the Tannery (not to mention the Tannery itself, which is a whole other post) which is contemporary, but fits in with Newburyport’s environment. To my knowledge there hasn’t been any contention about the new building (he also had a terrific opening where he invited the public in for a huge all day party for free–great public relations and marketing.)

The new building exists where two huge and unsightly storage tanks were once located. The new Tannery building consists of both residential and commercial units. It also provides parking and a pedestrian walkway connecting Water Street to the proposed Bike Path and to the Newburyport’s Waterfront. (And also in response to Ben Laing’s post, I think that this is an excellent example too of a development that benefits the citizens in Newburyport, Massachusetts.)

The Federal Street Overlay has been criticized by some architects as “being like Disney Land.” ( People tend to forget what might have gone in there, a huge 40-B housing project and also that the two historic homes on the property have been saved and beautifully renovated) Although I don’t agree with that opinion, I hope that most architects would agree that the new Tannery building is an architectural accomplishment as well as being an excellent example of a “win-win” situation for Newburyport, Massachusetts.

Mary Eaton, Newburyport

A Business Point of View on the Towle Property in Newburyport, Massachusetts

Mr Laing’s observations would be true and solidly reasoned if Newburyport were at a perfect equilibrium point where the size of the City (value of property and thus the tax base) covered the basic overheads and necessities of the city.

In business there is the concept of the “break even point”. That’s defined as the level of income, in our case taxes, which are necessary to cover fixed costs. Once the “break even point” is met, all new income only has to pay for variable costs and in effect a profit is realized.

In the case of Newburyport, it seems to me that our strategy should be to grow rapidly toward a level of a property base that gets us to a “break even point.” Then we can provide services needed and get ourselves out of the destructive spiral of cutting based on tax burdens rather than “choosing” based on prudent management and priority setting.

Ron Martino, Newburyport

A Vision of Newburyport that Integrates and Saves the Old and Builds the New

I’ve only lived in Newburyport for 2 years and I admire the great old buildings which were saved from “urban renewal” by those dedicated preservationists in the past. But…I’ve got this conflict of ideas that I could use some help sorting out.

In addition to saving the old, I believe in progress, growth, prosperity and private property rights. I’d like to see a future based on a vision of Newburyport that integrates and saves the old and builds the new.

After all, the great old buildings exist because someone was once entrepreneurial and prospered. I’d like to see BOTH great old buildings and great new buildings harmoniously integrated into the living fabric of the city. I don’t want us to be just a museum.

Here’s one idea, maybe its a bit too optimistic (probably more likely naïve) but…why can’t the entrepreneurs and RE owners decide to pledge to some sort of “code of reverence” for the old and unique built heritage of Newburyport.

They shouldn’t do this out of altruism only. That’s not the way of practical leaders of business. They should consider it in exchange for the active support of those who are historically and preservation minded. The preservationist community should actively support those who take such a pledge.

And we need to differentiate between ‘a great old building’ and ‘just an old building’. After all the Merrimack Valley is full of 3-deckers that are almost 100 years old, and most of us would say with few exceptions they can be replaced with something better.

I’m thinking of some sort of “Grand Bargain” where it becomes easier to develop property in exchange for good solid, genuine respect for our built environment, scenic vistas, etc. Maybe planning boards, zoning boards, and historical commissions can set out some ideas of what it means to exhibit “good stewardship” and if developers agree to that code of behavior, they could get a easier and less costly process to approval.

Time is money. Give these developers a clear path and a less time consuming process and in exchange, demand authentic care for the built environment.

Of course if some are opposed to all growth, any growth period, then they won’t be part of this bargain. I’m afraid I think some people who want no change or growth at all will participate in the planning process just as a delaying tactic and not really out of an open minded desire to just ‘get it right’.

Personally I think we can have both growth and preservation, both history and progress. Its not and question of either/or.

Can someone help me sort this out?

Ron Martino, Newburyport

Mayor Moak Wins Hearts, Money of Local Business (and yes, Developers)

Tom Ryan, the editor of The Undertoad, way back in November wrote that developers won when John Moak was elected mayor.

One of today’s leading stories in the Newburyport Daily News is about how the largest donations to Mayor Moak’s campaign were from local developers and business owners. The Newburyport Daily News goes on to name them.

(Having the story on the front page of the Daily News this morning made me wonder if Mr. Moak and his supporters are actually reading the Newburyport Political Blog and would like their side of the story to be told.)

I would like to say for the record that my experience has been that often the business community has been reluctant if not the very last segment of the Newburyport community to get behind issues that are important to local historic preservation.

In fighting for High Street’s preservation against MassHighway, I found myself frustrated in getting the business community to take a stand against such an obvious threat to the community and their own economic prosperity.

In the fight to save One Temple Street against demolition, it was actually an institution in the business community that was destroying part of historic downtown Newburyport.

Most of the developers that are listed in the Newburyport Daily News are not historic preservationist. Often the shell of a building that these developers “restore” maybe left standing, but all the historic elements are usually gutted and often rescued by someone in the community who understands their worth.

No wonder that there are supporters of John Moak who dislike Nicholas Cracknell, Newburyport’s Planning Director, so much. Mr. Cracknell is a planning director that is holding developers in Newburyport accountable and fighting for real historic preservation.

If I were Mayor John Moak, I would not be proud of the article in today’s Newburyport Daily News. I would be embarrassed that there are people who supported his campaign that often actively work against historic preservation. They may deny it, but people in Newburyport, Massachusetts know that it’s true.

Mary Eaton, Newburyport

Newburyport’s International Business Profile

A new group has been formed with a set of goals aimed at growing Newburyport’s international business profile. The group’s mission statement is below:

The Newburyport Chamber of Commerce International Subcommittee provides an economic, social, and service mission to help existing area businesses grow internationally, attract new international businesses and facilitate high quality international business services for the community.

Those interrelated pieces of our mission consist of:

Service Mission
To assist local businesses in their international growth.
To attract new international business.
Create an environment of trust, respect, and teamwork through quality service.

Economic Mission
To assist and support the Chamber in its international efforts.
Support the creation of a multi-faceted chamber.
Assist in the creation of long-term and sustaining members.
To encourage job creation.

Social Mission
Educate chamber members, city businesses and residents on the global economy.
Build relationships beyond buyers/sellers for international business.
Encourage diversity amongst area businesses.
Create an information exchange on relevant international issues.

The next meeting of the Chamber’s “International Business ” committee will be held at the Chamber’s conference room on January 19th at 8AM.

Our guest round table speaker is Dorothy Zur Muhlen-Tomaszewska, Director of U.S. Dept. of Commerce, Boston Office.

The topic is “Export Assistance and Global Business Solutions”. This topic we be interesting to consultants and professional service providers, as well as the more traditional manufacturing audience.

Please feel free to extend this invitation to any of your colleagues or friends.

Ron Martino is the Co-Chairman of the International Business Committee at the Newburyport Chamber of Commerce.

Ron Martino, Newburyport