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Across Michigan and the nation, small townsare on the chopping block.

Small downtowns with mom-and-pop shops must do or die, say retail experts, or they'll be swamped by arising tide of internet sales, along with killing competition from flashy malls, Big Box stores and superstores like Walmart.

Except that one burg is defying the death knell:South Lyon, a town of about 12,000 people in southwest Oakland County.Since the Great Recession of 2008-12, South Lyon has made a come-back and then some.

On Tuesday, Mayor John Galeas Jr. and City Manager Lynne Ladner didnt just cut a ribbon for one or two new stores. They scissored through a blue ribbonstretched right across their downtowns main artery, Lake Street, blocking traffic just long enough to mark what they called a grand opening for, well, the whole quaint little downtown.

"We've had 17 businesses either open or expand significantly in the last year," Ladner said.

And South Lyon isn't alone. Selected olderdowntownsin many locations are bouncing back, reinventing themselveswhile some of the nation's most familiar retail names like Kmart, Sports Authority andBorders Books have either gone bankrupt or seem headed that way.

"It's very nice to see the pendulum swinging our way," said Jerry Dettloff, executive director of the Michigan Downtown Association,a statewide group that promotes traditional shopping districts from Allen Park to Zeeland.

"If you look at age groups, the millennials are looking for places to hang out, and the slightly older people with families want the experience of being together," Dettloff said.Since the Great Recession waned, new businesses as well as apartments and condos have popped up in numerous small downtowns -- from some of Detroit's close-in suburbs toex-urban spots reaching north and west as far asMichigan's summer colonies, he said.

"But it doesn't just happen. You need somebody -- a person, a group, an organization -- that supports your existing businesses and recruits the right kind of new ones, the kind that will do well," Dettloff said.

In Macomb county, "we're seeing this happening in quite a few locations," said Jon Paul Rea, Macomb County Director of Planning and Economic Development.

Private investment in Utica, boosted by state-issued brownfield tax credits, turned an old landfill into a $15-million minor league ball field, unleashing a small storm of new bars, restaurants and ice cream spots; and, closer to Detroit, St. Clair Shores continues to leverage its nautical theme with plans to increase public access to its waterfront while incentivizing new restaurants and condominium construction tied to the business district's lakefront location, Rea said.

In Wayne County, a big success story is Grosse Pointe Park's linear downtown on Kercheval, where empty storefronts, a vacant gas station and nearly defunct church have become a bakery, chic restaurant and microbrewery -- respectively.

ForSouth Lyon, it was no easy task to take on theswarm of Big Box stores beckoning a quick freeway spin west in Brighton, andNovis glittering 12 Oaks Mall 15miles to the east, not to mention the siren call of internet marketers from every computer screen and smart phone, South LyonCity Councilwoman Maggie Kurtzweil said.

"I'll tell you, three years ago this downtown was a dust bowl. Our vacancy rate was high," Kurtzweil said. Reviving the shopping district fell toBob Donohue, the city's economic development director, who also heads themerchant-driven Downtown Development Authority.

Donohue --on the job for just a year and in a new position for the city, after two decades overseeingdowntown redevelopment for Oakland County --said South Lyon's downtown has grabbed onto"the three key ingredients for success -- place, products and personal service."

Those elements can work in any commercialdistrict, but they especially allow an aging onetoleverageits assets. That means restoring vintage buildings and creating a pedestrian-friendly setting for a special feeling of small-town "place"; encouraging a mix of unique retailers and services, with few or no chain outlets, to offer unusual products and brands that can't be found at, say, a mall or Big Box;and providing training forentrepreneurs about giving "absolutely unmatched, over-the-top customer service," Donohue said.

Oh, and by the way, it doesn't hurt to haveconvenient parking --which in South Lyon, is free, right on the street. A big part of the evolution of downtowns is acknowledging that Americans do have many options for shopping but they can't eat out or try new cocktails on the internet. That's led numerous downtowns of all sizes to welcome bars, restaurants and nightclubs -- to excess, Donohue said.

"I think some communities are beginning to see it's a mistake to overload on bars and restaurants" because doing that drives up lease rates and can make a downtown nothing but a pricey dining destination, vulnerable to economic downturns, he said.

"A well-managed downtown should have a mix" of dining, bars, retailers and services, "but that said, we need one or two upscale restaurants here in South Lyon --and I'm looking," Donohue said with a chuckle. A boutique-sized eaterycould tuck nicely into any one of South Lyon's beautifully restored, circa-1900 storefronts.

After this week's ribbon cutting, Oakland County Treasurer Andy Meisner craned his neck at the downtown's movie-set aura and couldn't help but cheer lead.

"You certainly can't experience this feeling on Amazon," Meisner said.

Contact Bill Laitner: blaitner@freepress.com

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Think small: older downtown areas in small communities urged to steer development toward smaller retail stores - Detroit Free Press