The Impact of Closing St. Vincent’s

When a major business closes, it’s hard to know exactly what the impact on the surrounding community will be, but there are sure to be economic and real estate ripples. St. Vincent’s Hospital closed at the end of April, and the community lost 3,500 hospital employees, thousands of visitors to patients, and hundreds of suppliers as customers. Since the closing, more than 20 small businesses have closed in the neighborhood. The majority are in food service or retail.

The Greenwich Village-Chelsea Chamber of Commerce has been trying to assess and deal with the fallout, and New York University is doing a long-term study. Early numbers from the chamber’s own survey of Greenwich Ave. and Seventh Ave. businesses show that half the stores lost anywhere from 20 to 50% of their business. Many businesses are reducing hours, inventories and staff numbers to stay afloat.

Tony Juliano, the chamber’s president, put the matter plainly in the Villager: “People have been scrambling to find new healthcare for the community. But up till now, few have been looking at the impact on business, and that’s our job at G.V.C.C.C.”

In addition to looking at lower sales numbers, businesses are not seeing their rents go down even with the rising commercial vacancies. For example, Artepasta’s former Greenwich Ave. at Perry St. space is offered at $40,000 per month.

What’s Being Done?

- The GVCCC is currently talking with landlords about lowering or at least keeping rents static, and local assembly members are working around the politics.

- Google is also planning to create an Internet portal for every small business in the City, allowing merchants to review and change for accuracy.

- Other business owners are calling for the community to band together and patronize each others’ storefronts.

- Local meetings are being held to alert business-owners about free services, counseling, and loans.

With 20-50% drops in business and rents not moving, something has to give. A lot depends on what will replace St. Vincent’s, which was in operation for 161 years, and how the property will be developed.

Photo Credit: Mattie_Photos

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