Schenectady business owners optimistic amid changing downtown landscape

Gone was the once-vibrant hub of activity and assortment of small businesses that were anchored by manufacturing giants General Electric and the American Locomotive Co., whose employees would flood downtown between shifts prior to the decline of the companies. Blight and decay was all that remained, Lent recalled.

“When I was in high school, you didn’t come to downtown Schenectady. There were only a couple stores on the street. … It wasn’t a place where you would go and just have a casual afternoon,” Lent said, standing behind the counter of Bittersweet Candy, her Jay Street business that celebrated its fifth anniversary this past week.

Lent left Schenectady shortly after graduating, but returned three decades later to be closer to family. What she found surprised her: A growing business community and a downtown far more active than what she recalled growing up.

The energy, Lent said, was something that she wanted to be part of, so when it came time to open a storefront for her candy business, she jumped at the opportunity for a Schenectady location.

“When I originally moved up here, I thought I was going to have my business in Saratoga [Springs], and then I saw what was happening in Schenectady and I was like, ‘Nope, just kidding, Schenectady,’” she said. “I chose Schenectady over Saratoga, which most people would not believe, but I made a conscious decision to bring my business here instead of up there.”

Lent is just one of several business owners who said they were optimistic about the future of downtown Schenectady despite recent challenges stemming from the coronavirus pandemic that have led to increased telecommuting and an economy that has many on edge and that has made it difficult for some businesses to stay open. 

In the last year, a number of prominent businesses have closed their doors, including the hulking Mexican Radio restaurant at the corner of State Street and Broadway, and Bombers Burrito Bar up the street. Both establishments remain vacant months later.

More recently, Zen Asian Fusion on State Street and Great Flats Brewing on Lafayette Street announced plans to close, and the CVS Pharmacy downtown shuttered unexpectedly after the company signed a long-term lease for the location just three years ago.

But there’s been positive developments, too: Ember & Cork, a wood-fired restaurant, quickly filled the former Zen space, and Milas Restaurant & Bar, a Mediterranean eatery, opened in a former bank building on State Street in June.

Millions of dollars in new mixed-use and residential development has been proposed or is under development, while plans for a new aquatic center at SUNY Schenectady on lower Erie Boulevard are also in the works.

Renovations are currently underway to fill the long-vacant commercial space on the first floor of the Electric City Apartments complex with a Puerto Rican restaurant, and the Electric City Community Grocery is working to open a location directly across the street after a decade of planning by co-op organizers.

Two new businesses are slated to open on Jay Street in the coming months, according to Lent, who doubles as president of the Jay Street Business Association.

“I think downtown is growing every year and getting busier, and people are starting to realize that Schenectady is an awesome place to walk around and shop and eat,” she said.

CHANGING DYNAMICS

The ups and downs of the downtown are to be expected, said Philip Morris, CEO of the Proctors Collaborative, who noted that, while “change is inevitable,” the city’s turnaround has been impressive.

“I see the glass like three-quarters full, not even half full,” he said. “It’s mostly good news. I feel badly for some of the businesses that have had difficulty staying around, but I also see the ones that have done a great job adapting. So I think downtown is doing pretty damn well compared to most.”

Proctors has long been a bright spot in the Electric City, drawing thousands to the downtown area each year, even when the city dimmed amid the decline of GE and closure of the American Locomotive Co. in the late 1960s.

But the theater has been adjusting since the emergence of the COVID-19 pandemic in 2020, which temporarily put an end to live performances.

Crowds have since returned, but the theater continues to monitor and adapt to changing audience trends, according to Morris, who noted attendance at Friday night shows has dipped, but attendance during the week has grown.

“People have shifted how they do things and we have to respond to that,” he said.

Ray Gillen, chair of the Schenectady Metroplex Development Authority, said bolstering art and culture has been a major key to downtown’s renaissance.

While Proctors remains the marquee attraction, venues like Armory Studios have brought in attractions like “Van Gogh: The Immersive Experience” and “Dinos Alive” that proved to be widely popular and brought scores of visitors to the city. Nearby venues like Frog Alley Brewing and the Electric Grinch, a music venue across from City Hall, have been magnets for those looking for live music.

Rivers Casino & Resort at nearby Mohawk Harbor has been a destination in its own right, drawing thousands to downtown, according to Gillen, who expects the number of visitors will grow once an events center at the harbor opens next year.

“We’re really the envy of other downtowns when it comes to having Proctors here, having the casino, having these various entertainment venues,” Gillen said. “There are eight or nine places that have live music on the weekends now. That was never the case before.”

CHASING FOOT TRAFFIC

But Gillen has also noticed shifting trends, particularly in the city’s office space sector.

Remote work has become increasingly popular since the pandemic, and the trend has held a tight grip on the business sector even as the coronavirus has loosened its hold.

Prominent offices like Transfinder and MVP Health Care have yet to fully resume in-person operations, and state offices like workers’ compensation and lottery still split time working remotely.

“The big problem with our office sector is that the state workers are not back full time,” Gillen said. “That has hurt us as it hurt other downtowns. It hurt Troy. It has really hurt Albany.”

But Gillen said Metroplex has been able to “buck the trend” by attracting new office tenants, like the MTX Group, a technology consulting firm, and Pearce Renewables, which leased space on State Street and Erie Boulevard, respectively. He pointed to the Schenectady City School District moving its administrative offices to a Liberty Street facility that once housed OrthoNY, which has since moved to 500 State St.

GE Vernova has also added jobs to its downtown plant, where on-shore wind turbines are now being produced.

Additional office tenants, Gillen said, are expected to be announced in the near future.

“We continue to add tech companies downtown who do want their employees to be in the office, but the office segment is still recovering from COVID,” he said. “No question about it.”

Rob Simon has also noticed the loss of foot traffic, but he said his Jay Street sandwich shop is still plenty busy.

“There’s plenty to go around right now,” he said. “Now, if a couple places start bringing their workers back, it’ll obviously help even more. But right now, I haven’t heard any complaints.”

Simon’s family has long held a presence at the corner of Jay and State streets, where he worked alongside his uncle at Lyles Hoagies before moving on to other businesses in the downtown. He opened Jay Street Subs after buying his uncle out three years ago.

“It seems like we’re moving in the right direction,” Simon said. “I left working here probably about 25 years ago. At that time, it was tumbleweeds down here. Every other storefront was vacant. The last 10 or 15 years, they built it right back up.”

Still, Simon said he’s scaled back his hours of operation since the pandemic, but said it’s an example of how he “just kind of rolls with the punches.”

“We stay busy,” he said.

FINDING A NICHE

For Rich Sarnaci, downtown Schenectady has been a hub of activity that has been on his radar for years.

The owner of Storied Coffee & Milk Teas in Scotia, Sarnaci opened a second location on Jay Street this past summer in a space briefly occupied by Saratoga Coffee Traders with the hope of taking advantage of foot traffic he’s seen while shopping at the Schenectady Greenmarket, a popular year-round attraction, on Sundays.

Sarnaci said his store is busy on the weekend, but crowds have been less than anticipated during the week. He suspects remote work may be a factor, but noted he’s only been open since July and still trying to get a feel for the area.

Storied is known for its espresso drinks, bubble teas and boba drinks and pastries. But Sarnaci is looking to add additional food items in the future that he hopes will attract even more customers.

“It’s been a few months,” he said.

Still, the business owner sees reason for optimism.

Construction on the historic Wedgeway building at the corner of State Street and Erie Boulevard is continuing to progress and will bring 70 new apartments to downtown once complete. Across Erie Boulevard, a New York City developer has plans to rehab 308 State St., turning a trio of buildings into 45 apartments and additional retail space. There are apartment projects underway on Union Street and lower State Street as well.

“The residential market continues to grow,” Gillen said. “We continue to add units, which has always been part of our strategy.”

Sarnaci hopes he can market his business to the future residents.

“New people, more people, definitely cause for hope for any business,” he said. “And those are walkable locations, for sure, which is another thing that’s nice about downtown, everything’s a little closer.”

FILLING THE VOIDS

With all the progress, Lent said there are still voids that she’d like to see filled.

At the top of the list: A hardware store. Maybe a drycleaners.

“We have a lot of restaurants and bars, which is very cool. I love that. But general service-type things — I think that would be cool to see,” she said.

Eric Johnson agrees.

Board president of the Electric City Community Grocery, Johnson said grocery stores and other basic amenities play a pivotal role in downtowns, where residents often walk or rely on public transportation to access services.

“When you walk around downtown, where can you buy things that you might use in your house?” he said. “There’s not a lot right now.”

Johnson believes the co-op will be a “catalyst” for the city that will help address longstanding issues around food insecurity while also serving the downtown area’s growing population.

The co-op is still growing its membership while it solidifies details necessary for the organization to sign a lease agreement for 251-267 State St. that Johnson hopes will be finalized by the end of the year.

“We’re very optimistic,” he said.

Johnson was born and raised in Schenectady, but left for 30 years. He moved back in recent years and sees a city “that is still evolving.”

It’s an evolution he’s looking forward to watching.

“It’s important that our Schenectady residents don’t give up on our downtown,” he said. “It’s an awesome downtown.”

Photos: Downtown Schenectady

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