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Capital Ale House has been drawing crowds since it opened last month in downtown Fredericksburg.

Its success, aided by a $100,000 incentive package from City Council, is one of the bright spots in a year when retailers and restaurant owners have been hard-hit by the economic downturn.

The hope is that the bar and restaurant, along with Kybecca's new wine bar and the just-opened annex of the Fredericksburg Area Museum, will give people more reasons to patronize downtown businesses.

But those attractions, along with the new Courtyard by Marriott being built at Caroline and Charlotte streets, may be too late to give some downtown retailers a boost.

E.E. Smith, known for its colorful array of handmade gift items, has announced that it will go out of business early next year; and The Write Touch, a stationery store, is moving into a smaller shop next door to its current location at 1006 Caroline St.

Fredericksburg also is losing the old Roses in Park & Shop shopping center. It will be torn down in March to make way for the first phase of Eagle Village. The University of Mary Washington has purchased the 21-acre shopping center on U.S. 1, and plans to build student apartments, a parking garage and retail and office space there.

Spotsylvania Towne Center has been affected by the downturn as well. While it has gained several new shops, including a Starbucks and Teavana, the only business close to opening in its new Village at Towne Centre section is The Fredericksburg Pub. It should be ready to open at the beginning of January.

Cafaro Co., which owns the mall, originally said the new lifestyle center would begin opening in November, and the list of tenants would include Barnes & Noble, J. Crew and Firebirds Rocky Mountain Grill. They still plan to come, according to Cafaro spokesman Joe Bell, but corporate officials are moving cautiously due to economic uncertainty. Most probably won't start opening until spring.

Central Park has had its share of woes as well. Two major chains--Tweeter and Linens-N-Things, are going out of business, and Circuit City has filed for Chapter 11, which allows the Richmond-based company to reorganize its debt and to try to re-emerge as a healthy organization.