The lease of the old Millard Heath Building has been signed, and the building sparkles with newly added white lights that match the nearby trees on the Square.

The building sits in an area of downtown Denton, referred to as the entertainment district, that is becoming busier as nightlife venues and restaurants set up shop.

Two restaurants — Andaman Thai Restaurant and Gumbo House — have reserved their spots in the district and follow Cold Fusion Lounge, a jazz-only club that opened last month.

The clustering of like-minded businesses could help spur economic activity in the area, said Michael Seman, a researcher at the University of Texas at Arlington’s Institute of Urban Studies.

DRC/Al Key

A car pulls up to Fuzzy's Taco Shop on Thursday night in Denton. Fuzzy's, Rooster's Roadhouse and Dan's Silverleaf on Industrial Street are being joined by several other businesses in the growing entertainment district just east of the downtown Square.

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Restaurants and clubs bring visitors who spend money at other Denton businesses and create an economic spillover effect, he said.

“If cities embrace music-based entertainment options, they can leverage it for the betterment of the city,” Seman said. “The capacity for what’s there [in Denton] is a worldwide music economy.”

The development of the district is being spurred by plans for the A-train commuter rail line and its downtown station, which is scheduled to open late next year and is a part of the downtown master plan, said Linda Ratliff, the city’s economic development director.

“With more live music and more restaurants in this area, the downtown activities will improve,” Ratliff said. “The restaurants are a good thing [for the community].”

The restaurant and entertainment aspect of the area is reminiscent of Deep Ellum in Dallas, said Ken Hendrickson, who runs the daily operations at Cold Fusion.

That similarity prompted Cold Fusion to get comfortable and stay awhile, he said.

“Once you create a scene, then you have a destination,” he said. “This place is starting to get there; you park and then find something to do.”

Within the next month, Nick and Susan Neyrey, owners of the Gumbo House in Sanger, will offer their Louisiana cuisine on Hickory Street.

The couple is leasing 1,920 square feet next to Cold Fusion and plans to build a large deck on the side of the building for dining, Nick Neyrey said.

“This will be a culinary and entertainment district that will rival anything Dallas has to offer and anything currently in Denton,” he said. “This will be phenomenal, and I can’t wait to be part of it.”

The couple left the Gulf Coast after Hurricane Katrina, decided to move to North Texas and opened their restaurant in Sanger last September.

Gumbo House offers authentic Louisiana cuisine and will fill a niche in a larger restaurant and club community, Nick Neyrey said.

The apex of Industrial Street will become the new center for Denton entertainment, said Achava Tanadrop, manager of Andaman Thai Restaurant.

The Thai restaurant will move from Elm Street to Hickory Street over the next several months and will lease about 1,800 square feet of space in the renovated Millard Heath Building across the street from Cold Fusion.

“We think that location is growing, and we know the train is coming,” Tanadrop said. “We want to be part of something. We’ve been here for five years, and we feel like we’re part of Denton and we want to be part of this.”

The growth in the area has created parking issues that hopefully will be addressed soon, said Greg Johnson, a broker at Elk River Real Estate.

Newly implemented angled parking along Industrial Street created 14 additional parking spots, and the real estate firm is hoping a similar solution can be worked out on Hickory Street, Johnson said.

But Ratliff said the city’s plans for parking in the area have yet to be developed, so residents might need to park near the bus terminal west of Cold Fusion.

“We understand the issues about parking,” she said. “It’s hard to park in front of them, but hopefully people won’t mind parking and walking a block to go to a restaurant.”

The Cajun and Thai restaurants will be wonderful additions to the area, said Dan Mojica, co-owner of Dan’s Silverleaf.

“The more the merrier,” he said. “As more businesses move into the area, that in itself creates foot traffic and exposure.”

Dan’s Silverleaf used to be the only kid on the block, but area restaurants and Cold Fusion seem to have a symbiotic relationship, he said.

The lounge fills a void in the music community and features nice performances, Mojica said.

Cold Fusion Lounge opened last month and is a combination of old-school Las Vegas and the New York jazz scene, Hendrickson said.

The 47-year-old former carpenter, who built the marble and aspen bar and lounge seating in the 1,600-square-foot business, simply opened the doors to the club on a Monday in August and had a response from the local jazz community within 24 hours, he said.

“It was received a lot better immediately than I would’ve thought — we hit the ground running,” Hendrickson said. “The money isn’t quite there … but it’s not about the quantity, it’s about the quality.”

CANDACE CARLISLE can be reached at 940-566-6889. Her e-mail address is ccarlisle@dentonrc.com.