HANOVER — As part of an ongoing effort to make downtown more attractive to pedestrians, plans are underway to turn a gravel lot between two buildings on South Main Street into an outdoor venue for concerts and other events.

The lot is owned by neighboring Ledyard Bank, which has leased it to the town at no cost and also is donating money to spruce it up. The goal is to open for events by Aug. 1, Hanover Town Manager Rob Houseman said.

One of the biggest proponents of the project has been Lou’s Restaurant & Bakery owner Jarett Berke, who is part of the Downtown Hanover Working Group and also a member of the Selectboard.

“Having a place where people can gather is also really important,” Berke said in an interview at Ledyard Park.

The ultimate goal is to draw more people downtown to create a move lively atmosphere and boost foot traffic for retailers and restaurants by creating a public gathering space.

“Hanover doesn’t have a green like Lebanon,” Houseman said in a phone interview last week. “We don’t control the Dartmouth Green, Dartmouth does,”

Plans call for replacing the gravel with a flat surface as well as a temporary stage area, benches and tables, and string lights strung between Ledyard Bank and the brick commercial building on the other side. There also are ideas for a mural depicting the Appalachian Trail, which passes through Hanover, Houseman said.

About $100,000 has been raised for the project so far.

In conjunction with the Downtown Hanover Working Group, a group affiliated with the Upper Valley Business Alliance, the town is launching a fundraiser for pavers that donors can personalize that will be added to the space. That fundraiser is projected to bring in an additional $160,000, Houseman said.

Ledyard Bank has wanted to spruce up the vacant alley “for some time,” Mike Parisi, the bank’s executive vice president and chief banking officer, wrote in an email.

“It has been an undeveloped piece of land that has mostly been used as a pass-through alley,” Parisi wrote, noting that pedestrians use it as a way to get to businesses located behind the bank. “Creating the Ledyard Park will certainly give these businesses much better visibility, which we are very excited about.”

Kassady Small, who works at one such business, Bean’s Art Store, also is excited by that prospect. Concerts and other arts-based events could help drive foot traffic to the store, which has been in business for more than 40 years.

“A lot of people say, ‘I don’t notice you back here’,” Small said during an interview outside the store.

As Ledyard Park takes shape, a pilot project to block off Allen Street to traffic for a portion of the summer won’t be returning.

Last year, the area right off South Main Street was closed to vehicles from June 26 to Aug. 26. The Hanover Parks and Recreation Department hosted events in the space and there were seating options outside businesses including Sawtooth Kitchen and Still North Books & Bar.

While “there were people who enjoyed the space,” Houseman said, “I think it is important to recognize that there were disruptions as it relates to parking and deliveries.”

Houseman said he is working to survey Allen Street business owners and setting up a listening session to speak to them in person. The Allen Street closure had been the brainchild of former town manager Alex Torpey, who stepped down last summer.

“The momentum for any kind of follow through screeched to a halt,” Sawtooth Kitchen owner Kieran Campion said in an interview at his Allen Street business.

The temporary pedestrian mall created a great place for people to gather, Campion said. Sawtooth did not see an increase in sales compared to the previous summer, but Campion did notice an increase in foot traffic.

While he’d like to see the pilot project on Allen Street revived, he also supports the Ledyard Park plan.

“I think it’s a good project, but it’s not the same as what we had here,” Campion said.

Still North Books & Bar owner Allie Levy said throughout last summer, her staff received largely positive public feedback about the Allen Street pilot program, “with a few vocal detractors,” she wrote in an email.

Other business owners in the vicinity said they were glad that the Allen Street experiment is over.

Jack Stinson, who has owned Stinson’s Village Store since 1978, said he had a decline in sales during the two months the street was closed to vehicles. People were deterred by having to park elsewhere and walk, he said in an interview.

“It’s not a convenience store anymore,” Stinson said. “When you block the whole street, you change people’s behaviors.”

He also cited issues with delivery drivers and other vehicles having trouble getting out of the parking lot on Maple Street that connects to Allen Street.

Steve Buskey, who owns the buildings located at 7 and 8 Allen St., and the parking lot located at 9 Allen St., agreed.

“We need every street we can get in downtown Hanover because you’ve got cars backed up everywhere,” Buskey said in a phone interview.

The Ledyard Park effort comes as several downtown businesses are once again setting up an outdoor dining spaces. Last week, Lou’s employees were setting up seating in four parking spaces on South Main Street outside the restaurant that accommodate about 10 tables. Known as a parklet, the concept was introduced during the COVID-19 pandemic.

Four businesses have access to four spaces apiece on South Main Street: Lou’s, Murphy’s on the Green, Boloco and The Works Bakery Cafe. Per the town’s ordinance, up to 16 spaces can be taken up in total from May 1 through Oct. 31.

“It’s very popular,” said Liz Sisk, a manager at The Works, where the added space can fit about 24 diners.

Liz Sauchelli can be reached at esauchelli@vnews.com or 603-727-3221.