His shoes clicking over new hardwood floors, Steve Bullock paused by a window and recalled his days living like Ted Kaczynski in this former Broadway warehouse.

The wind stirred through gaps in the windows. Daylight beamed through cracks in the walls. The first two contractors told him he’d be better off tearing the brick building down.

Known as the Hermann Building — a place where furniture and coffins were crafted in the 19th century — the structure had become a downtown eyesore.

Now, it’s a model of urban living.

“Part of it was the excitement of owning a great old building,” Bullock said, offering a tour of his upscale condo, which looks out over Last Chance Gulch. “I remember going by it as a kid. You can look out just about anywhere and you’re seeing all of Helena.”

The building’s familiar red-brick façade is reminiscent of Helena’s past. But its modern interior whispers of the city’s downtown revival, where residential investments are driving a wave of new energy.

“From a view standpoint, there’s so much to appreciate about downtown,” said Lisa Bullock. “I would love to see downtown revitalized. I would love to see it continue to grow and reawaken.”

Around the country, more and more people are moving from the suburbs back into downtown areas, fueling residential rebirths in cities like Denver, Portland, Chicago and Dallas.

The same may be said for Helena, although the trend may be taking place at a slower rate. People like Linda Reed, who turned the top floor of the old Carlson Appliance Building into a high-end loft, and Rick Alton, who converted the Calwell Building into nine condos, are helping revitalize Helena’s historic downtown.

“If I could focus my whole business on nothing but downtown renovations, it’s what I would do for the next 10 years,” Alton said. “I firmly believe in this idea and the process of rejuvenating the downtown through residential redevelopment.”

Blair Williams, a member of Urban Mountain Development and part-owner of the historic Placer Building, is looking to bring new energy into the downtown district by creating a place where people live and play.

Urban Mountain purchased the Placer earlier this year, introducing 59 condos for sale on the Walking Mall. Already, Williams said, 30 units are under contract. Nearly 80 percent of the buyers are purchasing more than one unit, intending to merge them into a single living space.

The upper floors of the old hotel are abuzz with activity. Contractors are gutting tired apartments and reshaping rooms into modern living spaces finished to their clients’ liking.

Williams is no stranger to downtown redevelopment. Three years ago, she began remodeling the old Distillery Building on the north end of downtown, creating six lofts with a bakery pending on the ground floor.

A self-confessed trend watcher, Williams believes Helena is following other American cities in its push to revitalize its downtown. Success means attracting people to live downtown, which attracts more businesses and, she believes, creates a sense of activity, accelerating the cycle.

“Helena tends to be 10 to 15 years behind the curve, which isn’t a bad thing, because you can look out and see what’s coming,” she said. “You watch what’s going on in other communities and you see what’s working.”

A paper published by the Brookings Institute supports Williams’ theory. Revitalizing any downtown district requires a core foundation of shops, hotels, housing, offices, artist studios, restaurants and entertainment.

It’s something Helena already provides. At times, however, the city has had trouble capitalizing on its offerings. The missing ingredient, some believe, has been the lack of downtown residents who both own and occupy their properties.

“The way to rejuvenate downtown is not by introducing restaurants and retail; you have to introduce downtown living,” Williams said. “We as a development company feel it’s our responsibility to make sure the district we’re coming into is made better.”

This summer, Urban Mountain and surrounding businesses purchased an inflatable movie screen and projector to show classic films in Performance Square. Saturdays on the Walking Mall now feature outdoor music, most recently the Marathon Dance Band and the Wilbur Rehmann Quartet.

An outdoor market is in the works for the Walking Mall on Saturdays, and Urban Mountain hopes to open a fitness center and spa in the Placer’s basement next year. It’s also looking for a tenant to open the building’s forgotten rathskeller as a bar or restaurant.

“You’ve got to have people downtown and provide something for them,” said Carina Christensen, a partner with Urban Mountain. “You have to give it a push. It’s self-perpetuating.”

Jim McHugh, director of the Downtown Business Improvement District, said such investments are good for Helena. They help raise the market value of downtown properties by revitalizing vacant or rundown buildings.

Residents who both own and occupy their homes, McHugh noted, generally take better care of their property. They also help spearhead change, in part to benefit their own economic investment.

“It’s that pride of ownership,” he said. “There’s a psychological as well as economic benefit to it.”

More than 600 apartments are scattered throughout Downtown Helena, some of them used as subsidized housing. It wouldn’t hurt, McHugh said, to see more investment catering to a wider mix of income brackets. He also said that parking can be an issue for downtown residents.

However slowly the changes are taking place, Downtown Helena is changing. But if the historic district truly wants to turn the corner, McHugh believes, it must build a critical mass, attracting a greater variety of retail businesses that cater to a growing downtown population.

“We’d like to see it move quicker, but obviously, it’s driven by the economy,” said McHugh. “Most business plans are based on what the demographics are showing. Until that time, it will take some effort and time, the right mix and the right people to make it happen.”

Jeff Vrba and his wife, Karen, who opened the Knit & Nosh earlier this summer with Nancy Gietzen, have already observed a transformation in the district. The challenges facing downtown seem more apparent now, and the solutions within their grasp.

“In just the little bit of time we’ve been here, there’s been a huge changed in attitude and traffic — the whole thing,” said Vrba. “It’s more than just running a business. It’s the idea of reshaping Downtown Helena and really making a difference — really energizing it and making it a place people talk about in other states.”

That’s not to say there aren’t challenges. Businesses could stay open longer, catering to 9-to-5 workers as well as tourists. Members of Urban Mountain would also like to see retail space replace office space on the ground floor throughout downtown.

“Some of the successful downtown areas in the rest of the country started regulating where you can’t have office space on the ground floor,” said Christensen, who named Bozeman as one of those cities. “You’ve got to have people downtown, and you’ve got to provide something for them to do.”

In the last few years, several downtown restaurants have introduced sidewalk dining. It has proven popular, and their patios often packed on sunny summer evenings — places to see and be seen.

Near the Placer, at least two new restaurants, the Creperie and Lucas, are expected to open soon. The Blackfoot River Brewing Co. is ready to open its new taproom, and Capital City Perk, near the Placer, is finding its niche.

Those like Ken Saunders, who has run Saunders Jewelry and Design in the district for 22 years, are pleased with the direction things are moving. There have been setbacks to be sure, but Downtown Helena’s transformation into a trendy destination continues to move forward.

Saunders credits Urban Mountain for bringing new energy into the district. He also recognized the city of Helena for revamping the oft-controversial pedestrian park.

This summer, the city replaced broken irrigation lines, trimmed trees and planted grass through the Walking Mall. Flowers have added a sprinkle of color. Some sidewalks have been repaired.

“All those things go together to change the visual nature of the area,” Saunders said. “What the parks department has done, changing the visual environment, has made a really big difference.

Saunders said the spirit of the business community on the Walking Mall improved after settling the debate over vehicle traffic. If nothing else, he said, the future is set — the Walking Mall will be preserved as an urban park and a pedestrian setting.

Now, business owners and residents can plan for the future. This summer, Saunders said, has been a special one, marked with new downtown energy and more activity.

“In the 22 years I’ve been here, it’s the most civic activity I’ve ever seen take place down here,” he said. “It’s really, really positive. The improvements make it possible for pedestrians to come down here and shop, and for people to think, ‘I wouldn’t mind living down here.’ It’s working in that direction.”

Reporter Martin Kidston: 447-4086 or mkidston@helenair. com