Forecast for 2017 downtown business health looking good

The busiest time of year for Merced retailers didn’t end on Dec. 25, as many local retailers launched after-Christmas sales to cap off a busy year of development for downtown Merced.

Clothing stores such as Helen & Louise in downtown and Christina’s Fine Clothing in the Bear Creek Gallery were busy Monday as customers took advantage of after-Christmas sales, which were the biggest of the year for the clothing boutiques.

The sales came at the end of a year that included many positives for economic growth in Merced. City officials touted many new developments as other construction projects were underway; county voters passed a ballot measure for a half-cent sales tax to improve roads; and Merced experienced major personal income growth.

Since 2012, Merced has experienced the top personal income growth in the nation, at 13.7 percent, Governing Magazine reported earlier this month.

Much of the growth and development is attributed to UC Merced. The university is building its Downtown Center, employs high earners in the city and spends half of its costs for business services in Merced County.

Frank Quintero, the city’s economic development director, said UC Merced’s building “speaks volumes” about downtown’s health.

“It’s one of those things when people say ‘Show me that the UC is moving forward and investing in downtown,’ we can turn around in our offices and take a picture of the construction and send it,” he said, referring to the building’s location, which is across the street from City Hall.

The magazine also noted that longtime vacant spaces in downtown are filling, such as the plans to renovate the El Capitan Hotel and a mixed-use development for housing and retail.

“When people look to move for residence, a job or to invest in the community, one of the first things they do is look at downtown,” Quintero said. Traditionally, downtown is the heart of a community.”

Jackie Goodwin, the owner of Helen & Louise, said the store saw an increase in business this year, and she welcomes more downtown development.

“We could certainly use more,” she said. “As a customer myself, I like to go to a place where I can hit a few spots at once. It would be great to bring more business downtown.”

Quintero said the city hopes to secure at least one more entertainment anchor to solidify downtown.

“It will make it stronger,” he said.

Goodwin said most of the customers at the women’s clothing boutique are local and generational, which seems to be the case for other downtown businesses as well. Since the store opened in 1944, many of its current customers are their families’ third generation of Helen & Louise shoppers.

“We’re very grateful for our loyal clientele,” Goodwin said.

Quintero said the city plans to keep the momentum going in the new year. His staff has two community tours planned with Bay Area-based developers and construction looks promising, with Lennar building and others eying the city.

“As long as construction remains strong, I also think we will have a robust 2017,” he said.

This story was originally published December 27, 2016 at 7:52 AM with the headline "Forecast for 2017 downtown business health looking good."