DERRY — The abrupt closure of the Depot Square Steakhouse punched another hole in the downtown business district.
Long considered one of the jewels of Broadway, the popular eatery shuttered its doors over the weekend, leaving some merchants wondering what lies ahead.
While town officials bemoaned the loss of the restaurant in a historic former train station, they were quick to qualify it as more of a hiccup than a death rale.
Michael Gendron, a member of Derry's Downtown Committee, said losing the Depot is only a small bump in the road to the downtown's economic development.
"Derry is still situated very nicely geographically right off Exit 4 of (Interstate) 93 and 11 miles over the Massachusetts border in tax-free New Hampshire," he said Tuesday. "It only needs a few entrepreneurs that have the ingenuity and the vision to capitalize on Derry's attractive location."
That's what owners Tim Frost and Jane Tuerck thought they had when they opened the upscale dining spot in 2002.
When the restaurant opened, Tuerck told the Derry News the steakhouse was something the town didn't have.
"We decided this would be an ideal location to do the kind of restaurant that we've always wanted to do, which is kind of an upscale casual restaurant," she said at the time.
Neither Tuerck or Frost could be reached for comment. The pair's other restaurant venture, Janie's Uncommon Cafe, remains open in Londonderry.
The Depot earned the Greater Derry Chamber of Commerce's Business of the Year award in 2005.
"I'm saddened," said Gina Gulino-Payne, the Chamber's executive director. "To see that beautiful building vacant is a tragedy."
Gulino-Payne said the Depot was her "landmark" when businesses and visitors would come to the downtown area, looking for a specific location. She said the downtown was revitalized when the Depot opened its doors.
At the same time town officials work to reinvigorate the heart of the downtown, existing businesses are slipping away. A downtown committee meets regularly to discuss issues like parking and aesthetic upgrades.
But empty storefronts dot both sides of Broadway. The Blackberry Bakery moved to a Londonderry location several months ago. Scrapbook Island recently shut its doors and Anthony's Cucina closed.
Brad Benson, Town Council chairman and downtown business owner, said the Depot's closing was sad and the owners had worked hard to make the restaurant succeed.
"But this has nothing to do with the community or the downtown," Benson said Tuesday. "It's representative of the global economy and what's going on."
Derry is getting ready to welcome a new town administrator this fall and Benson said he hopes the community can continue to make economic strides.
"It's something I believe, that with every change comes opportunity," he said. "This is a loss to Derry, but as we move forward we can focus on economic development."
But for some downtown business owners, the drooping economy is just part of the puzzle.
Rhonda Cairns, the owner of Le Beaderie, has rented space at 6 West Broadway for more than seven years. She said sky-high rent costs and what she called a lack of concern from town officials are making it hard to thrive.
"Every time a business closes, it weakens the rest of us," Cairns said. "It's very sad. They need to cut the rent and hold on to what's here."
She said she thinks the downtown has great potential, but if a more affordable spot became available, she would consider moving out.
Cairns' neighbors at the Revive Salon plan to relocate farther down Broadway next to C&K Restaurant.
Derry hired Arnett Development Group LLC to help the town focus on economic development and planning strategies to make the town more attractive.
Stuart Arnett said the Depot's demise dampens the downtown streetscape, but shouldn't be taken as a giant blow.
"Clearly this is a setback," Arnett said Tuesday. "People have worked very hard in a key spot and we're still dealing with a recession."
He said losing a key business is hard, but the downtown will go on.
"It's sometimes one step forward and two steps back," he said.
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