The High Cost Of Staying Small

With its red-tiled Spanish architecture and idyllic seclusion, the sleepy commercial district of Paseo Delicias in the heart of Rancho Santa Fe evokes the sense that time stands still, or has at least wandered off for a long siesta. Banished are the Starbucks and Burger King staples of modern commerce, as well as urban nuisances like garish billboards and parking meters. Paseo Delicias holds back the clock with grace and seeming ease — as it well should, for the surrounding community of about 5,500 still ranks among America's wealthiest, and the homeowners' association zealously preserves the low-key atmosphere for the peace and privacy of its distinguished residents, and keeps the downtown main drag an open secret.

But the constriction of Rancho Santa Fe's 80-year-old Protective Covenant and the stresses of the nation's most pricey real estate market have changed Paseo Delicias, edging out the amenities of Main Street U.S.A. in favor of mortgage brokers and realtors, and have local merchants banding together to revitalize the area as a shopping destination — but still a secret one.

For many, the dreamy illusion of bygone Alta California is shattered the moment they try to park on Paseo Delicias or surrounding streets, which were never designed with motorists in mind. With no parking regulations in place, the spaces were forever occupied. "The problem has always been the amount of realtors in our town," explains Connie McNally of The McNally Company Antiques. "They all said, 'We want more retail to come in,' but they took all the parking spaces."

When the homeowners' association imposed a one-hour limit, the gridlock gave way to a hectic scramble, as another cherished facet of small-town life was rudely ripped away. Patrols began issuing warnings, and the sheriff was called to write tickets. "Now they're changing it to two hours, which we'd wanted to begin with, because you can have lunch at Mille Fleurs or Delicias, and then come and shop," says McNally.

Bobbie Schwarz, whose Parrot Press Papers has served the villagers' printing needs since 1977, has seen the consumer traffic and merchant population steadily decline in recent years. "We'd like to see more people. The problem with the parking has gone on so long that people have stopped patronizing the few retail stores that are left."

With the new era of increased parking turnover, cautious optimism prevails, but the times outside the Village's eucalyptus-grove borders are changing (and appreciating) at a breakneck pace. She hopes more local patronage will follow the new accessibility of Paceo Delicias, but, like almost all the other merchants, she seldom advertises outside Rancho Santa Fe.

In March of this year, 20 local businesses joined a new merchants' association headed by former Solana Beach mayor and local resident Marion Dodson. The group has a ready advocate inside the Rancho Santa Fe Planning Committee, of which Dodson is a member. She is everyone's hero in the parking wars, and she has more in store. A new village master plan, now in development, should include provisions for mixed-use zoning and even the remote possibility of new development as spurs for retail growth. However, while space is limited, some commercial properties have gone vacant for as long as two years. Also a business property owner, Dodson has taken a hit to try to bring more retail space into the area. "Sometimes you have to bend a little bit," she admits, "and wait to get the right tenant."

Delicias restaurant owner Steve Poskus is almost too busy serving patrons to talk about area issues. With Del Mar racing season in full swing, Delicias is bustling, but he, too, worries about the neighborhood. "At what point do you lose the feeling of the town, when it becomes mostly banks and realtors?" Poskus, also a realtor, himself doesn't see recent drops in interest rates drastically changing the real estate market, but the unique beauty of the locale trumps economic issues. "I still think this is a great area. We're very fortunate to be here."

Though many of Paseo Delicias' restaurants, jewelers, and boutiques still thrive, the most popular tenants lately seem to be realtors and mortgage brokers, simply because they can afford it. Prudential has acquired four offices in the Ranch, while Coldwell Banker has three. Owners and merchants believe some consolidation of the realtors' office space would relieve the pressure. "They're not using their offices the way they used to. Everyone's got their own laptop computer and cell phone, and they're running in and out, but not sitting at their desks all day," says Dodson.

Every retailer in the area would welcome more merchants to the neighborhood, but upstarts have little breathing space to build a clientele. Catherine Barry, longtime resident and agent at Barry Estates, boils it down; "They've tried to encourage more retail, but the rents are absolutely too high." The planning committee has opened more ground-floor space to retailers east of the village, but the high rents are still a dealbreaker for those who depend on foot traffic.

She relates the plight of men's clothing retailer Mr. B, which failed to find affordable space in The Village and went to Encinitas, and Ashley's Market, a beloved homecooking eatery, which gave way to another Coldwell Banker office. She suggests that incentives like waiving association fees for owners who rent to desirable retailers, or having the association buy commercial property and offer rent-controlled retail space, might help fill its residents' needs, even after they've bought a house.

"In the '70s, there was a hardware store here, a toy store, and an ice cream parlor," she says. "We're suffering in much the same way that boutique shopping suffers from the Wal-Marts, which are just more convenient. So we have to be a little more ingenious about what kinds of shops we want in The Village."

The Inn at Rancho Santa Fe hardly sees lighter traffic as a hardship. "People come more for relaxing than for major shopping," says managing director Kermin Beriker. "When you come here, you are in a different world."

When the parking policies were revamped, The Inn converted two tennis courts into lots and cleared its staff's 40 cars off the streets. The Inn has no plans to expand beyond its 87 rooms, but it is broadening its culinary horizons with gusto.

Dodson hints at a host of ideas waiting in the wings, including special holiday events and a slick walking tour guide to the Paseo merchants, and "more things to help the people, who live in the Covenant and around us, understand that we are a viable commercial district." Above all, though, the historical feel of the street must be preserved. "Behind that fa?ade, other things are acceptable, but we'd like to preserve the quaintness and charm of The Village. There's a flavor to that, as long as you have enough shops."

McNally augments her company's bottom line by Internet sales, but the old-fashioned key to her survival is her established good name. "I get a lot of local business, because people know me, and they trust me." Though she does fret about the wrangling and worry behind the serene Paseo Delicias facade, she chuckles at the notion that The Village might benefit from some real retail muscle, like a Target or a Wal-Mart. "Oh gosh, no. We don't even want a Starbucks." — Cody Goodfellow