Words by Scott Jason

At a downtown merchants meeting almost three years ago, some of the new business owners questioned what Merced was doing to reinforce the fragile economy as signs of trouble mounted.

Diva Accessories owner Tami Davidson, who has watched Main Street struggle and thrive for 17 years, lifted a phrase from President John F. Kennedy to inspire her fellow shopkeepers.

“We need to ask not what the city can do for us,” she told them. “We need to ask what we can do for the city.”

That meeting may have been the spark that, in the face of the Great Recession, has made downtown not only survive — but in many ways — thrive.

“Energy was built on energy,” Merced Development Manager Frank Quintero said. “We are very proud of what has been accomplished downtown.”

The next couple years saw a succession of major events that drew all kinds of people downtown. The first Merced Art Hop transformed the main drag into a gallery for painters. Cyclist Lance Armstrong and other world-class racers sped along 18th Street with Amgen. SummerFest, the rechristened Thursday night market, debuted after a yearlong hiatus. And first lady Michelle Obama’s commencement address at UC Merced echoed downtown during Cap and Town.

“It captured a lot what downtown could be,” Quintero noted.

The energy has continued with the city issuing 39 new business licenses to downtown entrepreneurs in 2009. While there isn’t any other data with which to compare this, it’s still a sign of that there’s faith in downtown’s complete revival. Want more evidence? Sweet Temptations bakery opened. A coffee shop is in the works. Also, two businesses — Rascals and Joey-O’s Barber Shop — have moved from North Merced to downtown. All this in what, statistically at least, amounts to a depression in Merced County. Visitors, even national journalists, have taken note of downtown’s electricity, even if some locals don’t see it.

“We’re believing what the statistics tell us,” Quintero said. “The numbers paint a picture, but it’s up to Mercedians to tell the story.”

To be sure, business downtown isn’t easy. Some shops are working harder than ever to attract customers and others are banding together, knowing they’re stronger united.

The groundwork for this unlikely recession-era renaissance comes after years of work by the city’s Redevelopment Association and with the support of venerable businesses that have weathered past recessions. Most importantly, there’s has been an injection of new blood from people who are primed to lead downtown to becoming the thriving core of Merced. But change is never easy.

Downtown businesses are pushing to organize and re-form a nonprofit downtown business association that will give them direct control of the budget to market Main Street and the ability to sponsor events that lure people to their shops. The backdrop for this effort is the past failure of the association and the brutal economic climate that’s made it difficult for even the strongest of nonprofits to survive.

The coming year could prove pivotal. The success of new businesses could encourage more people to take a risk and fill one of the many voids. Any failures could make people decide to play it safe.

Invest, rebuild, repeat

As a way to combat urban decay in city centers, California allowed cities and counties to form redevelopment agencies, which reinvest property tax money in areas that would otherwise fall behind. In 1974, Merced’s Redevelopment Agency designated downtown as an area in need of help.
The agency has proved to be the biggest player in the rebirth of downtown, pumping millions of dollars into the city’s core. Many of the prominent buildings downtown have been made possible through the agency because it can offer low-interest loans to finance construction and also partner with developers.

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