Decline and Second Era
The heyday of Underground Atlanta lasted for only half a decade. When neighboring DeKalb County relaxed their restrictions on alcohol consumption in the early 1970s, new bars sprouted up in other parts of the city, generating competition. The dress code restrictions were dropped and fights began to break out. The construction of the MARTA East Line beginning in 1975 tore out several blocks of clubs and eliminated parking. Crime became uncontrollable and the area was considered dangerous. In 1980, Underground Atlanta was closed. A few businesses struggled to stay open, but by 1982, they left and the area was once again abandoned.
Underground sat mostly dormant for most of the 1980s. Vagrants occupied several of the historic buildings, some of which were consequentially destroyed by fires. In 1982, newly-elected Mayor Andrew Young vowed to reopen Underground as part of his plan to resuscitate downtown Atlanta.
During this time, some of the clubs that were destroyed by the MARTA construction eventually won a claim for damages from federal mass transit authorities and used the money to help revitalize the area a second time. An expensive $142 million renovation conducted by The Rouse Company began in 1987. This included $85 million in city municipal bonds.
On June 15, 1989, Underground Atlanta reopened as more of a modern shopping mall than an entertainment district. Its 140 tenants included the retail outlets Sam Goody and Olivia Newton-John's Koala Blue boutique, as well as a reopened Dante's Down the Hatch in the Kenny's Alley section. Although the historic buildings and architecture remained a major draw, some critics felt that the now-sanitized district had lost its original charm and lively atmosphere.
In August 1990, The World of Coca-Cola, a museum chronicling the history of The Coca-Cola Company and its products, opened adjacent to Underground Atlanta, bringing further influx of tourists to the area. But on April 30, 1992, in the wake of the Rodney King trial verdict, the area was severely damaged by rioters who smashed the windows of stores and restaurants. The following month saw a 40% decline in sales. A new marketing campaign which stated "The Fun in Town is Underground" was designed to help its public image, and although the area saw significant attendance during the 1996 Olympics, Underground Atlanta still ended the year $6.5 million in the red.
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