Tide is changing Downtown
By Diane Weaver Dunne

On a recent rainy Friday afternoon, McKinnon’s Irish Pub on Asylum Street was filled with patrons. Well past the lunch hour but still during “normal” workday hours, the eight-month old pub was brimming with people and their chatter.

Young and old, professional and blue-collar, the patrons seemed to be simply hanging out. Some were busy tossing darts. A few others shared a plate of hot wings. And several lined up alongside McKinnon’s majestic bar, a 130-year-old hand-carved mahogany and oak marvel, somewhat famous for being captured in the movie, “An Officer and a Gentleman.”

McKinnon’s and the dozen other new businesses that opened their doors in Downtown Hartford during the past year signal a significant step towards the city’s revitalization goals. Although these enterprises aren’t among the city’s big ticket, multi-million dollar public and private projects, Hartford’s large and small ventures depend on each other for their future growth.

While the big projects are bringing new housing and people to Downtown, these small enterprises are helping to create the city’s sense of place and character, and a place to hang your hat.

The momentum in the city is boosting the mood of many seasoned Downtown business owners, who caution that while there is still much to be done in the city, they are guardedly optimistic.

“I’m pleased to announce there is a changing tide in Hartford,” said Ronald Morneault, president of Business for Downtown Hartford (BFDH) at the organization’s annual meeting held at the Goodwin Hotel on June 12. Morneault then listed the new Downtown businesses.

From a new Curves for Women on Main Street to a new Subway on Asylum Street, that list includes both franchises and one-of-a-kind, family-owned businesses.

One such business is the Enchanted Garden, managed by brothers John and Jack Pragosa. Inspired by Southern Florida clubs, the restaurant and bar is decorated with hand-painted wall murals and Salvador Dali-inspired artwork.

Fionna Stone, a new retail shop on Pearl Street, offers women’s designer clothes unavailable elsewhere in the region.

Nearby, at BIN 228, the décor is reminiscent of rustic Italy, with some of its 64 different bottles of imported Italian wine lining the walls. The menu features various types of Italian fare, such as panini and bruschetta.

The second floor Café Verdi offers the flavors of home cooking, local art and photographs displayed on its walls, and an unusual view of Pratt Street. The restaurant is open for breakfast and lunch. Dinner is by appointment.

Another new Downtown business is Griffin Clothiers, offering custom-made shirts and suits. A tailor and a selection of fabrics from Europe and Asia are on hand at the store.

“It is something to see, especially during these tough times,” marveled Morneault, referring to the dozen new businesses. And he should know. He has co-owned Tuesdays, a clothing store on Asylum Street, with his wife, Jody, for 33 years. They are among the remaining veteran city retailers who have witnessed both Hartford’s boom times and its declining years.

His enthusiasm stems not only from the appeal of Downtown to new enterprises, but also from the fact that an increased number of young adults are coming into the city to enjoy its nightlife. In fact, the Morneaults sporadically stage late-night fashion shows at 12:30 a.m. at city bars to promote their store’s clothing line to Hartford’s night-going crowds, he said.

Vanessa Williams, a small business specialist for the Hartford Economic Development Commission (HEDC), shares Morneault’s optimism. “There is a high level of interest in Downtown Hartford,” she said. “Everybody wants to locate on Asylum, Main and Pratt streets.” Pointing to a section on Asylum Street recently vacated by Pelican, a former clothing retailer, Williams expects the now vacant space to be filled quickly.

“When you see a dozen or so new businesses opening just in the Downtown, that speaks to the building excitement in the City of Hartford,” said Harry Freeman, executive director of the HEDC. “There is a willingness and a desire to invest in the city.”

Freeman attributes the momentum to a combination of the major projects in Hartford, such as the $155 million Northland Investment Corp.’s Town Square development at the Civic Center, the $640 million Adriaen’s Landing project and the $60 million renovation of the former G. Fox building for Capital Community College.

Those projects will result in more foot traffic Downtown and they are contributing to the city’s appeal, Freeman said.

Matthew Corey, owner of McKinnon’s, acknowledges those projects were in mind when he chose the Asylum Street site for his new pub. A window-washer by trade for the past 14 years, Corey said, “I’m counting on the Northland investment.”

Northland’s project calls for the transformation of the Civic Center Mall into a pedestrian-friendly cluster of street-level shops, a high rise tower of 262 apartments, entertainment venues, restaurants, a small grocery/convenience store, a sports club and some public spaces.

Capturing those urban patrons also appealed to BIN 228 owners Alicia Roncari and Peter Johnson. “We wanted to stay in Hartford,” said Roncari, a Windsor Locks native. “We just thought so many things were happening here and we wanted to have that feeling of being in the city. We thought our clientele would embrace something different.”

So far, Roncari says their projections have been correct. BIN 228 fills up most evenings, first with the theater-going crowd, then later with a younger age group.

But opening up a new business is risky –- about 50 percent fail within five years, said Susan Coleman, the Ansley Professor of Finance at the University of Hartford. And it’s particularly risky during an economic downturn, when the public is leery about spending discretionary money on non-essentials, she said.

However, businesses that sell alcohol often do fairly well during tough economic times, Coleman said. Bars typically attract patrons who are out of work and seeking social interaction.

Corey, the owner of McKinnon’s Irish Pub, said that while this first year has been tough, “we’ve done a lot better than I expected.”

Brothers Jack and John Pragosa agree that the 17-hour days, seven days a week that they put in to run the Enchanted Garden can be grueling, but they too are pleased. With a $1 million investment in their three-floor bar and restaurant, the Pragosas attribute a buzz about their three-month-old establishment for keeping them afloat.

“Word of mouth is very powerful,” he said. Anniversary, corporate and retirement parties hosted at the club have mostly been prompted by word-of-mouth referrals, he said.

However, the slow economy hurts, he added. “Everybody looks busy, but no one sees the books,” Pragosa said. “[Even the established, larger restaurants and bar owners] will tell you the economy has put a huge damper on profitability and revenue streams.”

Like the other new business owners, Pragosa is counting on increased foot traffic generated from the city’s major projects to boost profits at the Enchanted Garden. In fact, he and his brother are planning to open a second establishment, possibly in retail, next year.

“Even though our profitability is not where we’d like it to be, we’re satisfied. Definitely. It’s our baby!” he said.

But the big projects and the new businesses alone aren’t enough to create an inviting city, Pragosa said. “If the city wants to reinvent itself and make [Hartford] into a rising star, they have to do something with parking,” he said, noting patrons complain most about parking in the city. Trolleys, a shuttle, and more affordable parking lot fees would help small businesses in the city, he suggested.

It’s issues like parking that can make a difference for small businesses in Hartford, agreed Peter Gioia, an economist for the Connecticut Business and Industry Association.

But while small businesses are much more susceptible to a variety of issues, such as parking and the nation’s sluggish economy, it’s not all bad news, he said. The downturn has resulted in lower interest rates and a larger pool of potential employees — strong benefits to start-ups.

Another challenge to small city businesses is Hartford’s tax surcharge, said economist Fred Carstensen, director of research for the Connecticut Center for Economic Analysis at the University of Connecticut. The surcharge makes it even tougher for businesses to survive during tough times, he said.

But regardless of the city’s tax structure, Carstensen agrees that the time might be perfect for new business ventures in the city. “These are people who really understand the environment and competition they were moving into,” he said, noting that they are positioning themselves to catch the upswing of the economy and city’s revitalization efforts.

Notably, he said, their success is very important to the city. “Small businesses create a friendly place, an attractive environment, a place where you want to be. . . . They are the lifeblood of job creation. The vitality of our economy comes very much from small business,” Carstensen said.