‘A rising tide’: Downtown Urbana abuzz with new businesses and new life | Economy

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URBANA — Chris and Anne Lukeman have been part of Urbana’s downtown scene for 10 years as the owners of CU Adventures in Time and Space. Their escape-room business initially opened on Main Street in 2015 and later moved to North Broadway Avenue in 2018.

“At the time, it was a little bit out of downtown and quieter and off in the middle of nowhere,” Anne said. “But now … it is absolutely bonkers here.”

Several new businesses have opened on North Broadway Avenue and throughout downtown Urbana in recent months, including:

Elm City Coffee: The Jacksonville-based business opened its Urbana location on West Main Street in December.H Mart: The popular Asian supermarket chain opened a new location on North Broadway Avenue in January.Hotel Royer: The historic, remodeled hotel opened at South Race Street in April and is part of the Tapestry Collection by Hilton.The Yard on Broadway: The new food hall opened earlier this month in the building at 401 N. Broadway Ave. that was formerly home to Broadway Food Hall. It is home to new locations for several existing businesses, as well as two new establishments.

Additionally, Black Dog Smoke and Ale House’s Urbana location on North Broadway Avenue reopened in March after a five-year pause.

“Urbana’s having a big year,” said Sam Vandegrift, co-owner of new business Lazy Daisy Diner & Cafe.

“There’s just a buzz in downtown Urbana,” said Ben Manns, co-owner of Bunny’s Tavern on West Water Street. “It’s something that I’ve never felt before.”

Manns, who has worked at Bunny’s since 2006 and became an owner in 2009, said there are more people downtown than ever before and, consequently, more customers at the bar.

“We generally do not book outdoor events or outdoor bands on the same weekend as a home football game,” Manns said. “But this year, because of the hotel, we’ve actually gone ahead and booked an outdoor event on homecoming weekend, just because of the amount of people that will be in the hotel and in the vicinity.”

He also expects the return of students in the fall to add to the activity he’s already seeing downtown.

Lincoln Square Property Manager Hannah Smith is likewise excited about Hotel Royer, as well as two new tenants that have signed on at the mall: Lazy Daisy and a new vintage shop.

“We have a couple things in the works outside of those, but I won’t spoil the fun!” she told The News-Gazette in an email.

Vandegrift said Lazy Daisy is close to opening and is starting the final inspection and approval processes with both the Champaign-Urbana Public Health District and the city.

Andrea Ruedi, Urbana’s senior adviser for integrated strategy development, said the city is “thrilled” that developers and business owners are investing in downtown.

Ruedi said the revenue from Urbana’s hotel-motel tax and food-and-beverage tax has remained fairly consistent, and it’s likely too early to tell how much of an impact new businesses are having.

“We’re not seeing anything extraordinary in that regard,” she said.

According to Ruedi, there are likely a number of external factors that have led to the new additions downtown.

“Businesses feel more comfortable working in a post-COVID environment and are starting to reinvest dollars and think about their growth plans,” Ruedi said. “So I think that’s probably a big part of it.”

She added that the city has made it a top priority to develop the downtown area.

These efforts include incentives for new businesses, such as a $5.2 million reimbursement for Icon Hospitality, the developer of Hotel Royer.

Additionally, the city council voted in late February to approve incentive agreements for Fernie’s High Horse, a new entertainment venue and restaurant space being developed on South Race Street, and Parcadia, a fantasy mini-golf tavern being developed by the Lukemans in the same building as CU Adventures in Time and Space.

Parcadia’s website describes the business as “an immersive experience unlike anything else in the U.S., blending incredibly high-tech indoor miniature golf, interactive fantasy quests and minigames, magical private event spaces, innovative craft cocktails, and much more.”

Anne Lukeman said the hope is to open Parcadia yet this year, in fall or early winter. She added that it might be a partial opening, with the bar going first and more attractions following after.

The couple said they’re seeing a lot more people in their area of Broadway Avenue.

“Our normal kind of summer customers combined with all of the new businesses that have opened have meant that for the past month, basically … since the spring semester ended, we’ve just been busy every weekday,” Chris Lukeman said. “We’re used to being busy on the weekend, but now the weekdays are absolutely crazy for us.”

“When we have people who are coming in from out of town, it’s so nice to be able to just point them across the street, like ‘Oh, if you like Asian food, there’s a whole bunch of options in the H Mart food court, or we’ve got some great local favorites across the street at The Yard,’” Anne Lukeman said.

To date, four businesses are up and running in The Yard: Smith Burger Co., The Main Scoop, Public House 1833 and Watson’s Shack and Rail.

Also on the way: Columbia Street Roastery’s new café, Fernando’s Tacos and The Regal Pig Social.

“Regal Pig Social should be (opening) in the next week or two,” said Drew Smith, co-owner of The Yard. “They’re permitted; we’re just waiting on the final wrap and stuff to get put up. Columbia Street, I think, is still waiting for final health department approval, as well as Fernando’s. But once those two are bulletproof, they’ll be opened as soon as possible.”

Smith and his wife, Jessica, own Public House 1833 and The Regal Pig Social, in addition to Smith Burger Co. and The Yard.

He said the food hall has gotten “a lot of good feedback,” especially from families who are glad to have a place they can bring their kids.

Other downtown business owners have also been “very supportive” so far, he said, and several have visited The Yard.

That includes some merchants that might seem like Smith’s competition — including Manns, whose establishment is just down the road.

“Ben from Bunny’s comes in often,” Smith said. “I used to work for him for many years, and we still visit a lot of the local eateries and stuff around here, and everybody has nothing but nice things to say. As far as I’m concerned, any business is good business. It brings people downtown.”

“I think there’s enough to go around for everybody, where everyone can succeed,” Manns said.

His neighbors at Rose Bowl Tavern expressed a similar sentiment.

“We don’t consider it competition,” said Rose Bowl co-owner Charlie Harris. “What’s good for downtown Urbana, and our community, is good for everyone. A rising tide lifts all boats.”

Sarah Buckman, marketing manager at Common Ground Food Co-op in Lincoln Square, said while H Mart may present some competition, the co-op’s mission, first and foremost, is to make food “more accessible for our neighbors.”

“Having more culturally rich food sources is always a positive,” she added. “My hope is that as people start to find their favorite places in Urbana that they will stop in the co-op and feel a deep connection with our local food mission. We are always looking to draw UIUC students to the co-op, and I think H Mart will be one of many great introductory spaces for them to explore.”

H Mart is located in a building that was formerly home to a Save-A-Lot grocery store.

As such spaces fill up, the city now has a new problem to ponder.

“We’re in a situation where we don’t have the vacant buildings downtown,” Ruedi said. “We’ve got interest in being in downtown Urbana, but we don’t have a lot of spaces that are available for the size that some of these businesses want. So we’re working with a developer from Chicago and trying to identify some space in the University (Avenue), the old Five Points area.”