Development Watch

In the early decades of the 20th century, Naples came into its own as a city. The first grocery store opened in 1919 on Third Street South in Old Naples, and pioneer and entrepreneur Ed Frank built the first commercial enclave extending west to 5th Avenue South along the newly completed Tamiami Trail.

Since then, the condition of Naples' downtown districts has had notable highs and lows. The architecture of the 1970s changed the Avenue's classic structural design. During the 1980s, banks, brokerage houses, law firms and real estate offices flocked to 5th Avenue South, closing in the afternoon and leaving the area deserted at night. By the early 1990s, downtown Naples, while still considered the center of town, had fallen somewhat into disrepair, with vacancies reaching as high as 40 percent.

At the behest of the Naples City Council, the City of Naples Planning Division performed a "slum and blight" survey to determine the number of sub par properties in the general downtown Naples vicinity. The survey recommended the formation of a Community Redevelopment Agency (CRA) under state law, which funnels additional tax revenues resulting from increased property valuations into improvements of the CRA area rather than into the city's general fund.

The 5th Avenue South Property Owners Association worked out an agreement with the Naples City Council. Residents agreed to tax themselves to pay half the cost of improvements if the city would hire the Miami-based architects and town planners Andres Duany and Elizabeth Plater-Zyberk (DPZ) to create a redevelopment master plan for that commercial district. The city agreed.

In October of 1993, Andres Duany and his team arrived on 5th Avenue. City officials adopted the DPZ plan during the next year, and plans were made for its implementation. The DPZ plan sought to restore the sense of community to the main street, calling for parking modifications, outdoor dining, the addition of residential units, landscaping, streetscaping, the renovation and rebuilding of existing structures, the incorporation of the arts and a new list of tenants as space opened up.

DPZ Changes

Under the DPZ plan, The zoning code was revised to allow open-air dining. "Alfresco dining created a big boom of business for restaurants and cafes," says Kim Boyd of Boyd & Company, a marketing and advertising firm on 5th Avenue. "Eating and socializing on the outdoor patios contribute to a sense of community."

Michael Hernandez, a 10-year Naples resident and entrepreneur, opened his first 5th Avenue restaurant, Bistro 821, in 1994 on the precipice of the avenue's redevelopment. "My feeling was that there was no way that downtown Naples could be let go," he says.

He has since opened Zoe's, an upscale 5th Avenue restaurant featuring American cuisine with Asian, Spanish, Thai, Caribbean and Mediterranean influences. He observes that increasing numbers of his customers are young professionals and year-round residents.

The DPZ plan additionally recommended land-use changes to allow residential apartments and condominiums in the upper levels of office and retail buildings. The Poggenpohl building on the 300 block of 5th was the first to offer such units, and the Ingram building across from Kepp's will soon follow. Rates for apartments range from $1,050 to $1,800 per month.

"The flurry of redevelopment has created a demand for residential units on 5th," says Scott Cameron of Cameron Real Estate, whose company manages and leases property in the 5th Avenue district. "The avenue is becoming a very central, fashionable place to live, and that in turn will help sustain the businesses there."

With the zoning environment made more amiable, the city embarked on a $1 million pilot program -- half of which businesses and property owners paid -- that included the landscaping and streetscaping the 800 block of 5th Avenue. New sidewalks, native plants and canvas awnings made the block more pedestrian friendly, and "Naples yellow" paint unified the light poles, bicycle racks, benches and even trash bins.

According to 5th Avenue South Association CEO Patrick Distasio, property owners invested $16 million into the avenue during the first three months after the zoning changes were made. New facades blended European architectural elements with the distinct character of Naples.

The Parking Problem

Another part of the DPZ plan required the city to change the district's zoning requirements. "As a result of Duany's recommendations, the city eased the parking regulations," says Ann Walker, planner in the City of Naples Planning Division. "To encourage redevelopment along the avenue, the city lowered parking barriers by allowing street spaces to count toward merchants' required amount of parking."

The city has also initiated a project to provide additional parking. By year's end, a new parking garage behind Wynn's Market will be available for 5th Avenue businesses, residents and theater patrons. "The new garage allows a much better use of existing space," says Walker.

While the planned parking garage will provide additional space on 5th Avenue, however, the district as a whole has run out of available parking spaces. Many downtown business owners hoped the city would allow the garage spaces to be sold to those who need an increased amount of parking for expansion.

A compromise appears to be on the horizon -- the council recently accepted a plan proposed by a volunteer citizens' committee chaired by councilman Fred Coyle. Under the plan merchants may be allowed to count a limited number of off-site parking spaces toward their developments. The plan, which also includes guidelines for building heights and landscaping, is to be discussed in more depth during upcoming workshops. It is likely to be adopted this fall.

Retail Rates

Competitive lease rates have served to attract business owners and commercial tenants to downtown. Although rates on office/retail space on 5th vary, they are comparable to other Naples' favorites like Waterside Shops and Third Street South. Older buildings range from $13 to $15 per square foot, while newer spaces go for $20 to $26 per square foot.

The addition of street lighting has kept people on the sidewalks long after sunset, and increasing numbers of business owners have begun to lease space and stay open later. "One of the most noticeable differences since the redevelopment began is that there is life after five," said Mark May, a local graphic artist who recently moved his studio to 5th Avenue.

The visual and performing arts help to enliven the community around the block, year-round. According to Duany, the lifeblood of the community rests in the cultural community. Eight traditional and contemporary art galleries line 5th Avenue, including Harmon-Meek, Florida's oldest art gallery.

Additionally, two new cultural institutions will be complete by