The Willow Glen Resident

Lincoln Avenue success story: tax revenues jumped in 1997

At least 15 new shops opened last year

By Christine M. Lias and Cecily Barnes

Since the city of San Jose established downtown Willow Glen as a business improvement district nine years ago, upscale restaurants and retail shops have slowly filled out Lincoln Avenue. Now the city is reaping the benefits of its investment--sales tax revenues are up.

In the last year alone, Lincoln Avenue merchants generated $348,895 in sales tax to the city, up about 10 percent from the $313,666 collected in 1996 and about 29 percent from 1995, when the city received $270,734 from Avenue businesses, reports Roger Pickler from the city of San Jose's Finance Department.

In 1986, the Avenue generated a mere $137,714 in sales tax revenues.

"Willow Glen has continued to become more successful and economically vibrant," said Michelle McGurk, city liaison to the Willow Glen Business and Professional Association from District 6 councilmember Frank Fiscalini's office.

"BIDs are seen as a solid tool for economic development, which includes revenues that come in from having a healthy business district," she said. "You can definitely see that over the last few years in Willow Glen."

Merchants see the difference, too, observing that as the Avenue grows, so do the number of shoppers who patronize the area. According to Valerie Lewis, owner of Hicklebee's Childrens Books on Lincoln Avenue, sales have even increased just from last year.

"The Avenue is alive. Traditionally, we get the majority of our business from [all over] Northern California, but we've seen more walk-in traffic," Lewis said.

At a time when independent bookstores are feeling the heat of major bookstore chains, Lewis said that Hicklebee's, a 19-year Willow Glen landmark, will be in the area for some time. "We've been working very hard this past year," Lewis said.

Other businesses are continuing to thrive despite stiff competition. Matt Tullen, manager of the Willow Glen Coffee Roasting Company, says that business has remained "OK," despite new coffee shops in the area.

"We're holding our own," he said. "With Starbucks across the street ... there's a lot of competition in the coffee business. You have to have a special niche to survive. Ours is that we were here first."

McGurk attributes the Avenue's continuing success to the growing number of businesses, even if they are in competition with one another.

"I find that a lot of times, when I go to Willow Glen and am intending to go one place, another shop will catch my eye or I won't be able to resist popping into the bookstore," McGurk said. "And a lot of times, I end up spending money I hadn't really thought of spending when making that trip. I think that's pretty typical of the customers in Willow Glen."

WGBPA manager Demetri Rizos also attributes the increased sales-tax revenues to the number of new businesses downtown.

"The increase every year is because the restaurants are doing better and the new businesses that have come in," Rizos said. "Almost every month, we have a new business opening up."

Just in the last year, at least 15 new shops have opened on Lincoln Avenue, including Goosetown Caffe, Willow Glen Billiards & Brew, Dolce Spazio, Manhattan Bagels, Jamba Juice, Peet's Coffee & Tea, Petroglyph, Noah's Bagels, Garden Theater barber shop, Western Packaging, The Write Idea, L'Augusta Floral and Hermanos Restaurant.

Rizos says that while he's thrilled sales tax revenues have increased, BID members are wondering when the city will give them something in return.

"What's upsetting is that we read about the city having this windfall of profits, and we want our trees trimmed and we can't get it done," Rizos said.

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