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The owner of Cadillac Mountain Sports is closing his three downtown Portland stores, citing declining sales and little prospect for a turnaround because of the city's ban on chain store expansion in the area.
Matthew Curtis said sales at his Portland stores ? Cadillac Mountain Sports, Cadillac's Patagonia and Cadillac's The North Face ? have been declining since he opened them in 2002. The city's "formula business" cap, Curtis said, represents "a slap in the face" that will prevent him and other retailers on Congress Street from creating the amount of foot traffic they need to increase sales.
Curtis' decision is likely to reignite debate over the formula business limits, which were adopted in November by a 5-4 vote of the Portland City Council in response to a proposal to open a Hooters restaurant downtown.
The ordinance restricts franchises and chains, which are stores or restaurants using unified formulas of names, designs, logos, products and marketing. For the Old Port and the Congress Street corridor, a group of stores or restaurants becomes a formula business when it has 10 or more locations, according to the Portland regulation.
The city limits formula businesses along Congress Street and in the Old Port to 23, the current number in that area, and says future formula stores must be at least 400 feet from an existing one. That provision further restricts the businesses even if an opening occurs.
Curtis said formula stores on Congress Street, such as L.L. Bean and Olympia Sports, draw people to his and other nearby stores as well as those destinations. By banning additional chains and franchises, he said, the prospects for increasing foot traffic are limited.
"We cannot continue to grow in Portland with this ban, and we cannot reverse our sales declines if Congress Street deteriorates," Curtis said in a statement. "This ban is the opposite of everything I've learned about downtown revitalization."
Curtis said shortly after the limit was adopted that there may be room for a restriction on formula stores in the Old Port, but he opposed the limits for Congress Street.
A City Council panel is scheduled to review a proposed sunset provision for the ordinance today . That amendment, if approved, would have the ordinance lapse after June 30 unless the council votes to extend it.
City Councilor Edward J. Sus-lovic, who opposed the formula business ordinance and is the sponsor of the sunset proposal, said the closing of the Cadillac Mountain stores illustrates the "unintended consequence" of a measure he called "ill-considered and hastily conceived."
He said Curtis hires local people, provides good employee benefits and gives to community charities. "He is the kind of guy and the kind of business that Portland should be courting, not slapping around," Suslovic said, noting that Cadillac Mountain would have met the city's definition of a chain if Curtis had opened two more locations.
Commercial real estate brokers also have opposed the ordinance, saying it will make it harder to fill vacant storefronts. Roxane Cole, a principal in Ram Harnden Commercial Real Estate Services, said there is 83,000 square feet of vacant, ground floor commercial space in the area covered by the ordinance.
"What we don't have is a problem of keeping businesses out, but (rather) attracting them to downtown," Cole said. "It sends a very unfortunate message about Portland not being friendly to business." Others beside Curtis have been affected by the limits, Cole said, including a woman whose plans to open a deli franchise were blocked by the ordinance.
Michele Tribou was within a couple of weeks of closing on a commercial loan and had already put a $5,600 deposit on a Fore Street space where she planned to open a Heidi's Brooklyn Deli, a franchise with 29 locations, most of them in Colorado.
"Everything came to a screeching halt at that November City Council meeting," she said. "It's really disheartening." She noted that the deli will represent a total investment of about $300,000, and she's now looking at spaces in Falmouth and Auburn or other "towns that will accept me."
"These are not big-box, ugly, powerful things that come in and destroy a community," Tribou said. "They can come in and actually enrich a community."
She said advisers from the volunteer organization SCORE had steered her away from opening an independent deli, saying it would be easier to go with a proven formula through a franchise.
City Councilor James F. Cloutier said he will still support the formula business ordinance and oppose the sunset provision despite Curtis' announcement Tuesday.
"I'm not surprised to hear that somebody in the winter retail business is suffering from sales problems," Cloutier said, suggesting that this year's warm weather is probably more to blame than formula business limits. "The suggestion that there's a cause and effect here is a little hard to swallow." The closing of Curtis' three stores, he said, "isn't something that throws the basic wisdom of that decision in doubt."
Portland, Cloutier said, has been pushing for more residential units along Congress Street and wants to stimulate the development of small businesses there to redevelop the corridor.
Curtis said the three Portland stores represent about 10 percent of the sales for his eight locations. He said nine people will lose their jobs as a result of the closings, which will be complete by the end of March.
Staff Writer Edward D. Murphy can be contacted at 791-6465 or at:
emurphy@pressherald.com
Reader comments
Dave of Portland, ME
Jan 10, 2007 10:29 AM
Happy New Year Thomas - here's to getting a clue this year for ya eh pal?
Thomas of Deering Center, ME
Jan 10, 2007 10:28 AM
Declining sales since 2002, that predates the ordinance, so how can Gary state that the businesses failed as a direct result of it? Cause and effect that isn't there. Besides, the ordinance is working as intended: Heidi's Faux Brooklyn Chain Deli From Away isn't coming to town, which is a good thing.
Face facts, Congress Street will never compete with the mall for recreational shopping, nor should it. Do we really want hordes of glazed mindless consumers buying up Chinese-made crap wandering around downtown? That business model is rapidly ending, as the cheap oil era draws to a close. What we need are useful and pragmatic shops, restaurants and serivce providers to cater to the locals, not chains From Away that are only frequented by tourists. Sustainability is the key. This ordinance is a wise tool to help in the transition from national retailing to the inevitable locally oriented future.
Keith of Portland, ME
Jan 10, 2007 10:26 AM
It was a great quote by Roxane Cole - "What we don't have is a problem of keeping businesses out, but (rather) attracting them to downtown..."
Its great to see that the Portland City Council is right on top of another non-crisis!
Gary of Portland, ME
Jan 10, 2007 10:03 AM
Glad to see Thomas chimed in with his socialist, anti-capitalistic, "the end is near" garbage. Convenient excuse? The man is out of business because of an overbearing zoning law and his business won't be replaced. Glad you're happy with your property taxes. Some of the rest of us would rather have more business to decrease the tax burdern. Now, I'm waiting for Thomas's out-of-touch "our taxes aren't that high, I want to live in a hippie commune with no business, it won't matter when society crumbles" rebuttal. Let's hear it.
Matthew Curtis said sales at his Portland stores ? Cadillac Mountain Sports, Cadillac's Patagonia and Cadillac's The North Face ? have been declining since he opened them in 2002. The city's "formula business" cap, Curtis said, represents "a slap in the face" that will prevent him and other retailers on Congress Street from creating the amount of foot traffic they need to increase sales.
Curtis' decision is likely to reignite debate over the formula business limits, which were adopted in November by a 5-4 vote of the Portland City Council in response to a proposal to open a Hooters restaurant downtown.
The ordinance restricts franchises and chains, which are stores or restaurants using unified formulas of names, designs, logos, products and marketing. For the Old Port and the Congress Street corridor, a group of stores or restaurants becomes a formula business when it has 10 or more locations, according to the Portland regulation.
The city limits formula businesses along Congress Street and in the Old Port to 23, the current number in that area, and says future formula stores must be at least 400 feet from an existing one. That provision further restricts the businesses even if an opening occurs.
Curtis said formula stores on Congress Street, such as L.L. Bean and Olympia Sports, draw people to his and other nearby stores as well as those destinations. By banning additional chains and franchises, he said, the prospects for increasing foot traffic are limited.
"We cannot continue to grow in Portland with this ban, and we cannot reverse our sales declines if Congress Street deteriorates," Curtis said in a statement. "This ban is the opposite of everything I've learned about downtown revitalization."
Curtis said shortly after the limit was adopted that there may be room for a restriction on formula stores in the Old Port, but he opposed the limits for Congress Street.
A City Council panel is scheduled to review a proposed sunset provision for the ordinance today . That amendment, if approved, would have the ordinance lapse after June 30 unless the council votes to extend it.
City Councilor Edward J. Sus-lovic, who opposed the formula business ordinance and is the sponsor of the sunset proposal, said the closing of the Cadillac Mountain stores illustrates the "unintended consequence" of a measure he called "ill-considered and hastily conceived."
He said Curtis hires local people, provides good employee benefits and gives to community charities. "He is the kind of guy and the kind of business that Portland should be courting, not slapping around," Suslovic said, noting that Cadillac Mountain would have met the city's definition of a chain if Curtis had opened two more locations.
Commercial real estate brokers also have opposed the ordinance, saying it will make it harder to fill vacant storefronts. Roxane Cole, a principal in Ram Harnden Commercial Real Estate Services, said there is 83,000 square feet of vacant, ground floor commercial space in the area covered by the ordinance.
"What we don't have is a problem of keeping businesses out, but (rather) attracting them to downtown," Cole said. "It sends a very unfortunate message about Portland not being friendly to business." Others beside Curtis have been affected by the limits, Cole said, including a woman whose plans to open a deli franchise were blocked by the ordinance.
Michele Tribou was within a couple of weeks of closing on a commercial loan and had already put a $5,600 deposit on a Fore Street space where she planned to open a Heidi's Brooklyn Deli, a franchise with 29 locations, most of them in Colorado.
"Everything came to a screeching halt at that November City Council meeting," she said. "It's really disheartening." She noted that the deli will represent a total investment of about $300,000, and she's now looking at spaces in Falmouth and Auburn or other "towns that will accept me."
"These are not big-box, ugly, powerful things that come in and destroy a community," Tribou said. "They can come in and actually enrich a community."
She said advisers from the volunteer organization SCORE had steered her away from opening an independent deli, saying it would be easier to go with a proven formula through a franchise.
City Councilor James F. Cloutier said he will still support the formula business ordinance and oppose the sunset provision despite Curtis' announcement Tuesday.
"I'm not surprised to hear that somebody in the winter retail business is suffering from sales problems," Cloutier said, suggesting that this year's warm weather is probably more to blame than formula business limits. "The suggestion that there's a cause and effect here is a little hard to swallow." The closing of Curtis' three stores, he said, "isn't something that throws the basic wisdom of that decision in doubt."
Portland, Cloutier said, has been pushing for more residential units along Congress Street and wants to stimulate the development of small businesses there to redevelop the corridor.
Curtis said the three Portland stores represent about 10 percent of the sales for his eight locations. He said nine people will lose their jobs as a result of the closings, which will be complete by the end of March.
Staff Writer Edward D. Murphy can be contacted at 791-6465 or at:
emurphy@pressherald.com
Reader comments
Dave of Portland, ME
Jan 10, 2007 10:29 AM
Happy New Year Thomas - here's to getting a clue this year for ya eh pal?
Thomas of Deering Center, ME
Jan 10, 2007 10:28 AM
Declining sales since 2002, that predates the ordinance, so how can Gary state that the businesses failed as a direct result of it? Cause and effect that isn't there. Besides, the ordinance is working as intended: Heidi's Faux Brooklyn Chain Deli From Away isn't coming to town, which is a good thing.
Face facts, Congress Street will never compete with the mall for recreational shopping, nor should it. Do we really want hordes of glazed mindless consumers buying up Chinese-made crap wandering around downtown? That business model is rapidly ending, as the cheap oil era draws to a close. What we need are useful and pragmatic shops, restaurants and serivce providers to cater to the locals, not chains From Away that are only frequented by tourists. Sustainability is the key. This ordinance is a wise tool to help in the transition from national retailing to the inevitable locally oriented future.
Keith of Portland, ME
Jan 10, 2007 10:26 AM
It was a great quote by Roxane Cole - "What we don't have is a problem of keeping businesses out, but (rather) attracting them to downtown..."
Its great to see that the Portland City Council is right on top of another non-crisis!
Gary of Portland, ME
Jan 10, 2007 10:03 AM
Glad to see Thomas chimed in with his socialist, anti-capitalistic, "the end is near" garbage. Convenient excuse? The man is out of business because of an overbearing zoning law and his business won't be replaced. Glad you're happy with your property taxes. Some of the rest of us would rather have more business to decrease the tax burdern. Now, I'm waiting for Thomas's out-of-touch "our taxes aren't that high, I want to live in a hippie commune with no business, it won't matter when society crumbles" rebuttal. Let's hear it.