By Jaclyn Giovis

South Florida Sun-Sentinel

July 27, 2007

The Riverside Hotel has long been an anchor on East Las Olas Boulevard. Since owners of the historic business announced plans to expand along an entire block, it has also become a flag for change.

Residents and downtown business owners are buzzing over the proposed project, which includes a 135-room addition, a new spa and exercise facility, more stores and a riverfront banquet hall. But those plans also require the demolition of eight well-established bars, restaurants and stores.

And even though the expansion plans must still be approved by city officials, patrons already are divided about whether the development would bring positive change or spell ruin for Fort Lauderdale's lively downtown.

"It'll take away from the tone of the town," said Cynthia Miller, of Fort Lauderdale, who was out strolling the boulevard on a recent evening.

Others think an expansion is inevitable.

The Riverside Hotel wasn't large enough to accommodate an event that Plantation resident Norma Cahen had hoped to host there a couple of years ago. Cahen, director of early childhood education at Temple Kol Ami-Emanu-El, said if Las Olas Boulevard doesn't change to meet growing demands for downtown hotel space and new stores, it could eventually be mired in the past.

One thing is certain: If the expansion plans are approved, surrounding businesses will have to deal with ongoing construction for at least 18 months on the busy street that could deter regular visitors.

For stores and restaurants that depend on foot traffic during nights and weekends, any drop in business would make affording rising rents difficult. Rents on Las Olas Boulevard have steadily increased over the past five years from about $35 per square foot to about $45 per square foot in some areas.

Once maintenance costs are figured in, rents are about $50 per square foot, said Milton Wolfe, owner of Objets d'Art.

"For the small person it's right on the margin," said Wolfe, whose business would be among those demolished.

Wolfe has started looking for a new location on the street but was disheartened to learn that a seemingly "perfect spot" a 1,500-square-foot space at 803 E. Las Olas Blvd. was being marketed for more than $80 per square foot.

"The only people who could afford that is a chain store," he said, noting that even $50-per-square-foot rents would likely be a stretch for some businesses during the project's construction period.

The Las Olas Co. owns the hotel and 75 percent of the Las Olas real estate from the U.S. 1 tunnel to the Himmarshee Canal.

The family-owned company says the project aims to allow the Riverside to better compete against new luxury hotels on the beachfront.

"We don't see Las Olas changing that much," said Irv Bowen, chairman of the Las Olas Co. "We're going to be building on what's already there."

The expansion will extend the hotel eastward to Eighth Avenue and will be five stories high at most with retail space on the street level; the historic portion of the hotel will remain intact.

Bowen said the company will work to relocate the eight bars and businesses affected by demolition to other Las Olas locations. Those businesses include Needlepoint Originals, Ibiza shoe store, The Grape, Objets d'Art, Shizen Japanese cuisine, the former Brio's restaurant, O'Hara's and Cafe Europa.

"We know what got us here was the mom-and-pops," Bowen said. "They're what you can count on and that's what we're going to keep."

Ted Inserra, chef at The Grape, said the expansion would likely knock the restaurant out of the downtown corridor because there doesn't appear to be a space that would be able to accommodate a kitchen and some of the restaurant's other needs.

Other tenants have decided to stand in the camp for change.

"You always hear people complaining about ruining the ambience that exists," said Joan Bancel, owner of Needlepoint Originals, who is planning to move her business across the street. "Frankly, in areas like ours, if areas don't change and improve, people stop coming back."

Staff Writer Jaclyn Giovis can be reached at jmgiovis@sun-sentinel.com or 954-356-4668.