Executive Summary

The Corinthian Housing Development Corporation (CHDC) is a non-profit community development corporation located in the City of Newark’s Central Ward. Its mission is to improve living conditions for the residents of Newark by assisting in the economic, social, and physical rebirth of the Central Ward. CHDC’s initial efforts have focused on housing, beginning with the forty-five rental townhouses of Corinthian Homes Phase I. While housing remains the primary focus, future initiatives in the areas of economic development, education, open space, and crime prevention are planned. Towards this end, CHDC has asked Project Community’s economic development team to conduct research on commercial conditions in its target area. This report concludes that there are islands of strength and reasons for hope on which CHDC can build future economic development efforts.

The economic development team’s research focused on the Springfield Avenue and South Orange Avenue commercial corridors. These corridors have historically served a regional market as commercial centers offering a broad range of goods and services. They entered a prolonged period of decline after 1950, accelerated by the 1967 riots that devastated the Central Ward. Today, the remnants of the business community on Springfield Avenue and South Orange Avenue operate under challenging conditions in one of the most distressed areas of Newark.

The economic development team worked closely with CHDC staff to define the research goals. The overall objective was to develop an understanding of existing conditions, identify key issues, and inventory community assets in the CHDC target area. The research goals were: an inventory of physical conditions, the assessment of local business needs, the identification of programs to assist local businesses, and the creation of a guide to business assistance programs tailored to the needs of local businesses. The economic development team utilized surveys, a focus group, personal interviews, and a literature search to gather all necessary information.

The analysis of research on Springfield Avenue and South Orange Avenue indicates that there is reason for cautious optimism. There are islands of commercial strength in the CHDC target area and reasons to hope that local business assets will form the basis for an economic revitalization. The local business community has multiple strengths, such as:

• The tenure of businesses in the CHDC target area. A large number of businesses have operated in the Central Ward for many years, indicating a commitment to the community.
• The high level of ownership among local businesses. A large number of merchants own the property that houses their business, indicating a substantial degree of permanence and commitment.
• The performance of local businesses. A large number of merchants indicated that their business was stable or expanding, contradicting the perception that it is impossible to operate a successful business in the Central Ward.
• The residency of many business owners in Newark: Almost one-third of business owners live in the CHDC target area while almost one-half of business owners live in Newark. This indicates a commitment to operating a business in Newark.
• The employment and informal networks provided by local businesses. Local businesses employ a large number of community residents through a valuable informal network of personal contacts.

While it possesses significant strengths, the local business community has needs that must be addressed if it is to remain viable. They include: increased access to business necessities such as insurance, additional information about existing financial and technical assistance programs, additional parking where businesses are clustered, and increased opportunities to participate in organizations such as special improvement districts. Some local business needs are basic and would require relatively little additional expense for the benefit they would bring.

Business owners were also surveyed about improvements that would benefit the community. They identified a need for increased police patrols, additional housing, and better city services. Improvements that help the community may also help the business community since there is overlap between community and business needs.

The residents of CHDC housing were also surveyed about what goods and services they need and where they obtain them. The results are generally inconclusive and do not suggest major patterns or trends. There appears to be a market niche for additional food or convenience stores, professional services, and restaurants.

The research conducted by the economic development team uncovered as many islands of strength as problems in the CHDC target area. The Central Ward has underutilized assets and untapped economic potential that is obscured by the severity of Newark’s urban problems. There is significant economic opportunity for businesses providing the right product. The recommendations that follow build on the islands of strength and form the broad outline of a future action plan:

• Support mixed-use infill development. Promoting traditional mixed-use development will complement the existing built condition, increase pedestrian activity, and support mass transit use.
• Reuse abandoned or vacant sites. Reusing vacant structures or sites would promote adaptive reuse and draw upon Newark’s industrial legacy.
• Improve the streetscape. The poor street conditions are an impediment to shoppers, pedestrians, and merchants. Certain improvements could be made without major expense.

• Build on the strength of the existing business community. The businesses that were surveyed are committed to the community and should form the foundation of future revitalization.
• Provide greater access to capital. The difficulty of obtaining financing is a major obstacle to growth that affects the whole community.
• Organize the merchants. A well-run merchants organization could support existing businesses, guide investment, and increase community power in local government.
• Develop a job readiness program. A job readiness program would make more community residents employable in local businesses.

• Restore local bus stops. The improvement of local bus stops will encourage pedestrian traffic and increase patronage of local businesses.
• Create additional parking for businesses on South Orange Avenue. The segment of South Orange Avenue near the intersection with Bergen Street does not have enough on-street parking. A common parking lot would attract more shoppers.

• Organize a neighborhood watch and/or exert pressure for increased police patrols. Almost half of all businesses surveyed were victims of crime within the past year. Measures to address the perception and reality of crime will boost local businesses.
• Consider aesthetics in security protection. The menacing and unattractive security measures that dominate the streetscape create a hostile environment that deters shoppers.

The CHDC target area is generally assumed to be a difficult place for the business community to operate. However, research has identified islands of strength that can become the foundation for economic revitalization. The local merchants are valuable assets to the community. They have demonstrated their commitment and resilience through the tenure of their businesses, employment of local residents, homes in the community, and connection to important informal networks. An effort to meet their needs, including increased police patrols, access to capital, and infrastructure maintenance, should be initiated. CHDC can assist with this effort by providing organizational support and resources. Without these improvements, the business community on Springfield Avenue and South Orange Avenue will be so preoccupied with survival that it cannot participate in the economic revitalization of the Central Ward.