Burlingame Avenue Drawing Big Business

As more chain stores begin opening outlets on Burlingame Avenue, their presence has yet to adversely impact small businesses, although many residents are displeased with the change.

Increasing numbers of national retail outlets like Gap and J.Crew are beginning to occupy vacancies created by the economic downturn but have yet to change the character of local business.

Despite this encroachment, local business owner Mario Cruz remains unfazed.

"I live in another town and it's, like, destitute," said Cruz. "So for where we are, and how much the rents are and where we are located, Burlingame Avenue is doing pretty good, I think."

Cruz's business, Burlingame Tobacconists, has been on the avenue for 16 years, and he points to the recent addition of an olive oil merchant on the avenue as a sign that big business is not yet keeping small business at bay.

"It's a great transition time right now," said Cruz. "Maybe we will get the chains out of here and the small mom-and-pops will come back."

While a privately-owned specialty retailer is a welcome addition to the area, the growing presence of chain stores is obvious.

Newly-opened venues include Pet Food Express, a regional pet supply chain, and Vans, a international shoe retailer.

Patricia Love, Burlingame's economic development specialist, says this is a "healthy mix" of merchants, pointing out that while the presence of chain stores is evident, first-time business owners are moving into the downtown area, as well.

"The balance seems to be continuing as we see who fills in all the vacancies," she said.

Love credits the city's success in luring first-time business owners and larger corporations alike into downtown to streamlining the planning process. Maintaining the infrastructure (sidewalks, roadways and landscaping) around Burlingame Avenue, as well as in the broader downtown area, is also essential to attracting businesses to Burlingame, she said.

Still, enough Burlingame residents voiced their displeasure with the number of chain stores that city officials released this response in a July electronic newsletter:

"The City cannot legally prohibit specific chain-type businesses (i.e., corporate entities that have a larger presence within the region, state or nation) from locating within downtown Burlingame as long as the particular business 'type' (e.g., retail, service, or other type of commercial use) complies with the applicable zoning standards for the downtown district… the presence of chain stores...is likely attributable to the deeper pockets of corporate entities that are better funded and can afford the higher rental rates within downtown Burlingame."

High rental costs are reinforcing the trend of corporate retail chains setting up shop on the avenue, a factor the city is unable to influence.

In June, independent business operators proposed a Business Improvement District (BID) to the city council as a solution to addressing the issue of big businesses and other concerns.

While formation of the BID is currently being reviewed by the council, Love says it "potentially has a lot of positive impact on the downtown area."

A decision on the BID has been stalled by recent protests, and city council members won't vote until a majority of business owners in the proposed district approve its formation. More than half must agree to gain city council approval.

Whether for or against the BID, this engagement in the Burlingame Avenue business community signals a level of optimism.

The Burlingame Chamber of Commerce has endorsed the BID, a signifcant move for the non-profit group, which seeks to represent local business interests in government processes.

A chamber statement supporting the proposal said a BID will "create a strong and unified downtown that can work together to address parking concerns and get more people to come downtown to shop, eat, and do business. Many of the businesses involved strongly believe that banding together, particularly during tough economic times, is the best way to leverage resources."

As big business continues to plant its flag on Burlingame Avenue, local business owners are deciding whether to push back or work alongside the corporations becoming their neighbors.