Enthusiasm by South Portland leaders for a $6 million office complex planned for Waterman Drive is failing to sway some area merchants that the project can help the downtown economy.
“We always welcome new businesses to the area,” said Julie Wright, who co-owns Soma, a shop that sells antiques and offers massages. “But this area needs retail shops more than it does new office space.”
Her comments reflect the tepid response by several Ocean Street merchants to the planning board’s unanimous approval Sept. 11 of the four-story development to be built where Beale Street Barbeque now operates.
The brick building will house eight office condominiums with water views on the second, third and fourth floors. Each office suite will be about 4,000 square feet. The first floor, which will have large glass windows, will be used for a restaurant or retail space.
Developer Andrew Ingalls said he plans to break ground next month on the project, called 100 Waterman, and immediately start marketing the office condominiums.
He said a restaurant and retail service providers, such as doctors or accountants, are more likely to occupy the first floor, as opposed to boutiques or clothing shops. Zoning rules allow for a range of businesses on the ground floor of buildings in the village-commercial district.
Planning board members praised 100 Waterman as a model development, predicting it will give the tiny business area the boost it needs.
“This is a very innovative and beautiful building in what I call the gateway to South Portland,” said planning board member Carol Thorne.
The project will be built as the city makes road improvements along Waterman Drive, with money from a block grant.
Community planner Steve Puleo said the office development will benefit existing small businesses and add value to the area.
But several downtown merchants, including Wright, still question whether adding more offices will jump- start business activity downtown.
She and others argue that more retail space is the answer.
“More retail will bring more people,” said Wright, who opened Soma two years ago. The vintage dacor boutique also offers massages, accupuncture and other body services.
“We would love to see more shops and restaurants, like Fresh and Magnolias come in,” Wright said referring to a pair of small dining spots that recently opened.
Mike Gutgsell, who operates the Polishing Shop on Ocean Street, said he, too, believes that more restaurants and retail shops are “key components” to the future success of all downtown businesses.
But Ingalls, a long-time commercial broker, noted that plenty of retail space has become available since several businesses closed. They include Animal Antics, the Fashion Bug, the Sportshoe Center and the Lighting Collection.
“There are quite a few vacancies in the Mill Creek area,” Ingalls told the planning board. “This project will bring quality people to the area and it will be a high quality building.”
Downtown merchants noted there also appears to be plenty of office space available at the end of Ocean Street, where three buildings, including Bowdoin Medical, are advertising space for lease.
Ingalls said 100 Waterman will fill a different niche. The new office building is for owner-occupants, not renters, he said.
Ingalls maintains it makes more sense financially for many business professionals to own rather than lease their offices. He added that there are not many office condominiums available with the amenities that 100 Waterman will offer.
He said the proximity of 100 Waterman to downtown Portland, the Casco Bay bridge and the airport make it an ideal location. Ingalls hopes to attract white-collar professionals who are tired of paying premium rental prices for office space in downtown Portland. Ingalls also said 100 Waterman will have plenty of parking, while professionals in downtown Portland must pay monthly to lease parking.
He believes the success of shops and restaurants in the Old Port has been due in large part to the concentration of office workers downtown.
“This project will increase life in an area that has had none,” Ingalls said. “The thing that drives the Old Port is the incredible amount of office workers close to the shops from day to day. Off-season, the restaurants completely depend on office workers.”
Julie Wright is one of several business owners that believe the downtown needs more retail business to attract shoppers. Wright is a co-owner of Soma, a shop that sells antiques and offers massages.
A new four-story building will now be built where Beale Street Barbeque now operates. The brick building will house eight office condominiums with water views on the second, third and fourth floors. The first floor, which will have large glass windows, will be used for a restaurant or retail space.
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