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By John W. Gonzalez, Houston Chronicle Knight Ridder/Tribune Business News Feb. 12, 2006 - SAN ANTONIO -- It's an array of businesses
that might be found in a trendy shopping district: Starbucks, Hard Rock
Cafe, Landry's Seafood, Ben & Jerry's. The fact that these and
similar businesses are on the historic San Antonio River Walk has many
residents wondering whether the landmark is losing its identity in a
blur of corporate logos. Responding to a public uproar, Mayor Phil Hardberger recently
declared war on what he called the "McDonaldization" of the River Walk,
one of Texas' most popular tourist destinations with 3.5 million annual
visitors. As a result, chain operators seeking to strengthen their
foothold on the river's banks soon may face tough new scrutiny -- if
issues involving private property rights can be reconciled. There are
no McDonald's restaurants directly on the meandering River Walk, and
obtrusive signs aren't authorized. Yet, January's opening of the
Rainforest Cafe and the displacement of several independent businesses
for a proposed Landry's-operated Saltgrass Steakhouse ignited a lively
policy debate about the increasingly apparent commercialization of the
River Walk. The soul-searching coincides with the start-up of an
eight-year, $140 million construction project to improve the river
channel outside the downtown area. That will enable developers to
extend the River Walk's allure to other parts of the city, including
the "Museum District" just north of downtown. Hardberger said there's no way to oust existing chain-operated
businesses, which include a drug store and small shops as well as
wildly popular restaurants, from the heart of the River Walk's tourist
district. But he said the city must impose limits, especially in newly
developed areas, and perhaps impose a new regulatory framework to
preserve the city's "crown jewel." "It's such a precious asset to San
Antonio that the uniqueness of it must be defended," the mayor said
last week. "It's not that Landry's is a bad organization. It's that
their footprint gets bigger and bigger by the day on the river. My feeling is, enough is enough," Hardberger told the Houston
Chronicle. Ordinances being drafted The mayor also vowed action in his
"State of the City" address last month. "I'm not going to let the
'McDonaldization' of our River Walk occur. I want Mayor Maury
Maverick's legacy to reflect the community in which we live, not some
strip center in Anytown U.S.A.," he said. Ordinances to restrict chain restaurants -- but not
chain-dominated hotels -- were being drafted last week. Public hearings
likely will be held before a City Council vote, possibly within a
month, he said. Much of the ire has focused on Houston-based Landry's,
with its three River Walk restaurants including a Landry's Seafood,
which opened in 1989 as the company's first venture outside Houston; a
Joe's Crab Shack and now the Rainforest Cafe. Last year, the company
also won the city's Tower of the Americas concession and will reopen
the revitalized landmark in June, with new attractions at its base. The company's growing footprint shouldn't alarm the city, said
Jeff Cantwell, Landry's senior vice president of development. "We have
no interest in taking over the River Walk. We think the charm of the
River Walk is the way it's developed over time and you do have a great
combination of local and national operators," Cantwell said. That
combination "gives people choices and gets people back to the river on
numerous occasions. You have to remember, it's not just about San
Antonio residents, it's also about the tourist market that comes
there," Cantwell said. "We've opened where we felt like there were good
opportunities," he said. The company has stirred controversy elsewhere, including
during Landry's transformation of Kemah's Boardwalk, construction of
the Downtown Aquarium in Houston and an unsuccessful bid to revamp the
Corpus Christi waterfront. Cantwell rebutted local critics' assertions
that Landry's was forcing out small businesses and angling to dominate
the River Walk with its many brands. Landry's continually hears from landlords seeking
"credit-worthy" tenants on the River Walk, and it will continue to
explore new projects there, Cantwell said. "I believe the city is going
to have a difficult time putting ordinances in place that are going to
restrict a property owner's ability to lease his property," Cantwell
added. Even so, Hardberger insists the city is empowered to manage
development because public funds built, maintain and police the River
Walk. The city owns the narrow strips of land from the water's edge to
the buildings that line the banks. As part of its park system, the city
leases the precious land for outdoor dining. The River Walk now has 150
businesses -- 60 percent locally owned and 40 percent chain-operated. Empowering entities The city's Historic and Design Review Commission, which
scrutinizes architectural plans and building permits, could be given
new powers to control chains, Hardberger said. The council also is
mulling the creation of a separate entity to supervise only the River
Walk. And at least one councilman wants the Downtown Advisory Board to
play a greater role. Whatever regulatory approach is selected, officials want it in
place as new sections of the river are developed. This year, the U.S.
Army Corps of Engineers begins improving 10 miles of channel in two
segments. The first runs from Brackenridge Park near the river's
headwaters to downtown. The second runs from downtown to the Spanish
missions on the far south side. The river's cement drainage ditch-like
channels will be replaced with natural features, but riverbank
improvements that are likely to include hike and bike paths -- as well
as riverfront housing and commercial developments -- are still being
planned. For some, the biggest priority is the river's downtown
segment. "San Antonio has got to preserve the historic River Walk. If
we let that go then we've made a mistake," Parks Director Malcolm
Matthews said. The challenge is balancing the interests of small
businesses against others' property rights, he added. "It's something
that has been done in other cities. They (staff) are trying to evaluate
that and figure out what legal grounds we can rest on if we wanted to
get into the encouragement or protection of the riverfront for local
and small business," Matthews said. Balance is key to dispute
The clamor to limit chains is striking to Greg Gallaspy,
director of the Paseo Del Rio Association, which represents all
business operators on the river. "What really amazes me is, everybody
is all upset because of Rainforest and this has been going on for 10
years," Gallaspy said, noting that chains aren't guaranteed success.
Several outlets, including an Olive Garden restaurant and Planet
Hollywood, have come and gone, Gallaspy noted, and chains are hardly
limited to the River Walk. Downtown has plenty of them -- including
several raucous entertainment venues near the hallowed Alamo. Gallaspy
described Landry's, with three restaurants on the River Walk, as a
"good operator." Still, limits on chains, at least in newly developed areas, appear likely, he said. "What we want to do is ensure there's a balance. That's the key," Gallaspy said. Among those advocating a new commission with strong regulatory powers is Justin Arecchi, who lost his River Walk lease after 25 years as an ice cream vendor. His and two other businesses were asked to leave after Landry's sought the same site for a Saltgrass Steakhouse. "I went crazy looking for another place down there. I'm still looking," said Arecchi, who is opening a new shop a few miles from downtown. His Justin's Ice Cream Co. closed Jan. 1. Those not already displaced are afraid of being ousted for "whatever the next big thing is," he said. "I wouldn't mind if Taco Cabana came in. It's San Antonio. It reflects San Antonio. That's the difference." [email protected] ----- Copyright (c) 2006, Houston Chronicle Distributed by Knight Ridder/Tribune Business News. For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail [email protected]. NASDAQ-NMS:SBUX, NYSE:MCD, NYSE:LNY, Unknown:PHW, NYSE:ALG, Unknown:CAC, |