Is retail getting squeezed out of State Street?

Mayor Paul Soglin worries that Madison's main drag, State Street, is becoming overrun with bars and restaurants.

So Soglin is contemplating taking regulatory action to ensure that the mix of retail remains strong on this historic commercial strip.

"What's happening is, we're getting more and more uses that are what I call 'beverage-oriented,' everything from coffee shops to restaurants and bars, as well as bars that pass themselves off as restaurants," Soglin says. "The retailers cannot afford the rents. They cannot compete with the coffee shops and bars."

The mayor says he doesn't have any answers, but would like to start a conversation about the future of the strip, possibly calling for a moratorium on any new bars, restaurants or coffee shops.

"I think the solution is to have a community-wide discussion on the future of State Street," he says. "Do we want a State Street that resembles Sixth Street in Austin or one that resembles the historic State Street, which is more focused on diverse retailers, whether they be paper goods, gifts or novelties."

Austin's Sixth Street is often compared to State Street because it's a thriving college commercial district. But Austin's street is much more of an entertainment district, with large clubs and music venues. "If you go to Sixth in Austin, you can go an entire block and the only retailer you'll see is something that reminds you of Times Square, selling licenses plates or snow globes with the Alamo," says Soglin.

A long-term solution will take a couple of years to develop, Soglin says, but he identifies two possibilities: an "absolute ban on new square footage for liquor licenses" or an overlay zone, which would regulate the mix of businesses.

Soglin says he's resisted banning new liquor licenses, because that inflates the value of existing licenses. But, he adds, it's increasingly tough for retail to survive on State Street. "I'm looking for options that will secure the present uses on the street before we go over a tipping point where we lose most of the retailers."

Sandi Torkildson, owner of A Room of One's Own bookstore on Gorham Street, has long raised concerns about bars and restaurants pushing retail out of the area. She says cities like Boston and San Francisco have laws that require certain types of businesses to get conditional-use permits, to protect retail space.

Mary Carbine, the executive director of the Downtown Business Improvement District, says that retail stores are in a period of transition, not just downtown, but nationally, as "brick and mortar" stores face growing competition from online vendors.

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Is retail getting squeezed out of State Street?