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GREENSBORO - The debate surrounding a controversial new building on South Elm Street may lead area business owners to form their own merchants' association.

"I want to try to make it happen," said John Bailey, co-owner of Salon Bailey's, a hair, skin care and nail business at 320-A S. Elm. "That's a positive that came out of this whole experience."

Downtown merchants say they were caught off guard last month when a developer who wanted to erect a five-story, $3.6 million building at 324 S. Elm asked the City Council for incentives.

Those included a $100,000 forgivable loan to buy part of the city-owned parking lot next to the proposed building and the lease of 11 parking spaces in the lot.

The council voted 5-3 Tuesday night to approve the request.

Some merchants didn't like the building's design, thinking it was too modern for such a historic area; others didn't like the loss of the parking spaces for their own businesses; and some opposed the idea of incentives in general.

"No one had really talked to us about the project," said Quinn Miller, who owns property on South Elm. "(The plan) got a negative reaction from a lot of folks because they didn't know what was going on."

Miller said regular meetings might change that.

"When you are running a business, that is your little world and you may not talk to your neighbors very much," he said.

"We decided it would be great to get together and talk to each other. I think it is a wonderful idea," Miller said.

Bailey said the association would probably include businesses along South Elm between Market and Lee streets as well as those in the Southside neighborhood.

"We can all work together to make us more successful," said Bailey, who wants to see an association organized by early spring. "That's the incentive."

Merchants say an effort several years ago to form a downtown association failed.

"It was a much more formal organization," said Alex R. Amoroso Jr., owner of Cheesecakes by Alex on South Elm. "It just didn't take root .... Initially, (this) needs to be informal. Everybody needs to be comfortable and sharing their minds. If it evolves beyond that, so be it."

The Greater Greensboro Merchants Association already has a Center City Council which serves any downtown business or property owner. It meets every other month.

"If (the merchants) think another organization is worthwhile, we will help facilitate that," said Ed Wolverton, president and CEO of Downtown Greensboro Inc. "But if it is a duplication of service and a duplication of efforts, it may be that the GMA Center City Council may meet their needs."

Contact Donald W. Patterson at 373-7027 or don.patterson@news-record.com