Campustown businesses are facing a changing business climate as Iowa State expands or changes on-campus services.

Business has been down at many Campustown establishments since some Towers residence halls were either closed or changed to single-person rooms and CyRide began offering free fares for students, said several business owners in the district.

“[Campus] housing on Welch Avenue that used to hold 2,400 students now only holds 600,” said John Crawford, general manager of Copyworks Plus, 105 Welch Ave.

“And even those students don’t walk by here anymore.”

CyRide’s cost for students was changed from a 35-cent fare to a direct charge to their U-Bills in August 2002, which increased the number of student riders.

Dairy Queen, 117 Welch Ave., has also seen a change in business volume since students living in Towers began moving elsewhere, said owner Lorna Lauridsen.

“Now the kids move to Frederiksen Court rather than Towers,” Lauridsen said.

“I hope they build on the Towers site in the future. That would certainly help us.”

Changes in Iowa State’s dining options has affected Campustown business as well. Jimmy John’s, 135 Welch Ave., has seen a decline in sales on Sunday nights, said Izela Gauna, the restaurant’s general manager.

The Department of Residence’s Union Drive Community Center, which opened in August, offers Clyde’s Sports Club and a convenience store, both of which are open Sunday nights.

Changes in buildings, transportation and service offerings by the university are done to benefit students, not to directly compete with Campustown offerings, said Warren Madden, vice president for business and finance.

“ISU Dining is not out competitively competing with businesses in Campustown or elsewhere,” Madden said.

The decision to close Towers came from surveys showing student interest in housing closer to campus, he said, and the change in CyRide was initiated by the Government of the Student Body.

Offerings from ISU Dining services outside of traditional residence dining rooms, such as Clyde’s, the Union Drive Marketplace food court and cafes in various campus buildings follow a trend happening at universities across the country, Madden said. These services are meant for ISU students and faculty and are necessary to remain competitive as an institution, he said.

They are also perfectly legal. While Iowa law does prohibit public institutions from competing with private enterprises, exceptions are made for universities providing “goods and services that are directly and reasonably related to the educational mission of an institution,” including food service.

Also affecting both the university and Campustown are enrollment numbers, said Randy Alexander, director of housing and food service.

“There are 689 fewer students living on campus this year, not to mention lower enrollment of students living off campus,” he said. “The result is less business for all of us.”

Other factors not related to the university, such as the national economy, affect Campustown businesses as well, Lewis said.

“The overall economy is not good right now,” he said.

“People cannot overlook that,” Lewis said.

Ultimately, the success of Campustown is in its own hands, Madden said, noting the district once had a hardware store and Hy-Vee grocery store, but changed as demands changed.

“My assumption is if businesses in Campustown address what customers want, they will be successful,” he said.