Most students probably see 40th Street, the westernmost border of Penn's campus, as nothing more than a good place for a Sunday morning bagel. But for the high rollers of Penn real estate, 40th Street is the final frontier. "I really believe the leaders of Penn see 40th Street as a place where the community comes together, where students and employees and residents of this part of University City can meet," University City District Executive Director Paul Steinke said. But as Penn moves into the 40th Street corridor in the name of retail and revitalization, many local business owners fear a University monopoly on the area.
Buying up 40th Street
Some area retailers feel the University is trying to buy up as much of the 40th Street corridor as possible. The University already owns the property known as Hamilton Village, holding the leases for 11 businesses there -- including Izzy and Zoe's, Bitar's, Smokey Joe's and Fingers, Wings and Other Things. Penn also owns the entire Sundance Cinema complex between Locust and Walnut streets as well as the FreshGrocer property, which is located between Walnut to Sansom streets. But plans for this area are unclear after financial troubles put a hold on the Sundance project. Hamilton Village, which includes the area between Locust and Walnut streets, has seen failing restaurants and stores ousted upon the expiration of their leases on a regular basis. And several stores were recently closed to make room for newer establishments, which Penn hoped would complement the new Sundance Cinema complex and accommodate the large weekend and evening crowds expected to accompany the theater. In February 1999, the Cool Peppers Mexican grill shut down after its performance consistently fell short of owners' expectations. A similar fate befell breakfast spot My Favorite Muffin in September 1999. Each restaurant was quickly replaced. Middle Eastern eatery Bitar's arrived in April 2000, and Izzy and Zoe's deli came in February 2000.
Heading North
But if Penn is to continue its plans to breathe new life into 40th Street, it must expand north of Walnut Street and obtain property on Chestnut and eventually Market streets. University real estate officials refused to say whether they are looking to buy up the small businesses on South 40th Street. However, before construction on Sundance ceased, Tom Lussenhop, the University's top real estate official, indicated that vacant retail spots might be revitalized. "I think that within a year after Sundance and the market opening, you will see existing, un-utilized storefronts becoming active again." he said at the time. Such expansion has upset some owners of small businesses between Walnut and Chestnut streets. "It's not my concern as long as [Penn] can be fair," said one business owner who wished to remain anonymous. But he added that he believes the University's presence is "no good for business." "Penn is the worst... and they cheat" local businesses, he added.
The Sundance factor
When University President Judith Rodin and actor/director Robert Redford announced plans for the theater complex in September 1998, a complete revitalization of South 40th Street was expected to ensue. "It's not surprising that, with a significant investment like [Sundance], that any investor would want to shore up the flanks and make sure their investment is protected," Steinke said of the recent revitalization plans. Controversy surrounded Penn's negotiations with Redford because the Cinemagic movie theater at 3925 Walnut Street was originally allowed, by contract with Penn, to have the first bid at expanding to the site eventually purchased by Sundance. At the time, University officials claimed that Andrew Sheppard, the owner and operator of Cinemagic, lacked the necessary experience to lead the project at 40th and Walnut. But the plans for Sundance recently fell through when General Cinemas, which was providing much-needed financial support to the project, declared bankruptcy and pulled out of the project. Executive Vice President John Fry immediately voiced confidence that the University would find another source of funds and that the project would go on.
'Not a healthy mix'
Meanwhile, the 40th Street Business Association has been formulating its own plans to better South 40th Street, discussing additional street lighting, larger pedestrian walkways and increased security. Bob Christian, president of the 40th Street Business Association, said that those with a stake in the area intended for Penn to do business there -- but by no means to purchase it. "It's a fact of life that the University has a policy called 'buy West Philadelphia,'" he said. "It would be more healthy if there was a greater mix of landlords in the area, but it depends on what the University is ultimately going to do with the property." Penn hoped the 40th Street project would alleviate a variety of concerns about the limited retail options open to students. FreshGrocer would satisfy student complaints about limited grocery store options, and its round-the-clock operation would also improve safety by increasing foot traffic in the neighborhood. Community relations were expected to improve because area residents would supposedly welcome the new stores, but Penn encountered resistance from the Association. Christian said the 40th Street Business Association supported a revitalized area, though it was concerned with potential crowd and traffic disturbances. With this in mind, the Association recommended the University expand eastwards towards the Schuylkill River instead of focusing on the west. Christian said the Association fears that the University has too much power on 40th Street. "It's unfortunate that whenever there is a monopoly in any area -- little businesses and one giant landlord -- options for the small business are very small, and that's not good for a healthy mix in an area," he said. However, Steinke claimed Penn's intentions for the area are admirable. "The fact is that the 40th Street corridor has suffered from the effects of urban decline," Steinke said. "Any time there's the prospect of a new investment in property to reverse that decline can be a good thing." "We shouldn't automatically assume that bad things are going to happen," he added. "The University values the international character and the local, independent character of this part of University City, and they want to perpetuate that."
