After five years of running a business in Old Town, I’ve never been more optimistic about the prospects for this ancient Western enclave.

Two years ago, Old Town suffered the first of two major setbacks when the Shanghai Restaurant and Bar shuttered its doors after a century as a favorite beer and booze haunt for locals and tourists alike. Then in October of 2005, this community was knocked back on its heels when a massive blaze devastated a full block of the historic district. More than 70 people lost their jobs and with many small, nearby businesses already suffering, it was clear we had hit bottom.

Although it appeared to be our darkest hour, these unfortunate events served as a platform for a turnaround that is just being appreciated by those of us who live and work here. The American Block Building housing the Shanghai was crumbling from years of neglect, but the long-time owners stepped up and invested a significant sum to gut and stabilize the structure, preparing a solid and safe environment for a new tenant.

As soon as the flames were quenched, the process of rebuilding Old Town began, lead by Jai and Don Baker, owners of Awful Annie’s; the Browning family, owners of Old Town Pizza; and building owner Brian Hayes. Now in completely renovated spaces, business has never been better and both popular restaurants enjoy vastly improved facilities.

At the same time, a business of which I am co-owner, Carpe Vino, underwent a metamorphosis, adding a fine dining component to the existing wine shop and wine bar, as well as renovating the facade of three storefronts and interior spaces. After rave reviews in the Sacramento Bee and San Francisco Chronicle, the establishment now draws foodies and wine lovers from all over the region.

The Oz Gallery of Fine Jewelry was next to go back online after owner Catherine Rowe purchased the building and breathed life back into it. The only remaining space to be completed is the adjacent Mercantile Building owned by attorney Toby Richardson.

The most significant boon, however, has been the opening of the Auburn Alehouse, a new brewery and restaurant that has transformed the old American Block Building from a sagging curiosity to a vibrant, quality anchor for Old Town, finally restoring a venerable, underperforming structure to full productivity. Leading a group of investors, Brian and Lisa Ford recognized the potential of the place and had the tenacity, energy, big idea, entrepreneurial spirit and guts to make it happen.

In the short time their joint has been open, the tenor, pace and spirit of Old Town have improved markedly. Families from all over have descended on the Plaza to sample the hottest new spot in town, and for that matter in the foothills. And they’re not disappointed because the food is great and affordable and the beers brewed onsite are wonderful.

One thing is abundantly clear about the palpable vitality of Old Town. It is a direct result of private investment by motivated businesspeople. At a time when the City is struggling with the issues of redevelopment zones, streetscapes and eminent domain, real change is being effected by private individuals who are risking their own resources to make immediate, measurable differences here.

While building a monument sign on I-80 is a noble idea and a current City project, it doesn’t mean anything if there aren’t substantial hooks in Auburn to keep visitors here once they hit the off-ramps. And with more than a dozen restaurants and entertainment venues -- anchored by the Auburn Alehouse, Bootleggers, Carpe Vino and Latitudes -- Old Town Auburn is one helluva hook. With more than 60 businesses to capture the attention of visitors, the intersection of Sacramento and Lincoln Way is no longer a pit stop. As clearly noted in a recent travel section of the San Francisco Chronicle, it’s now a full-fledged destination.

Gary Moffat is a journalist and co-owner of Carpe Vino in Old Town Auburn. Read his other work at www.onlyinauburn.com and www.carpevinoauburn.com.