The status of Citi’s plan to open a retail branch at 16-18 Walden St. in Concord remains uncertain, but one shop already has closed its doors and another was instructed to leave by the landlord to clear a path for the national bank.

New York-based Citi, one of the world’s largest banks, is meeting almost as much resistance in Concord as British General Thomas Gage’s troops did in 1775. Downtown business owners in the affluent Boston suburb are fighting to keep the bank out of the area, claiming its plans to occupy storefront property there would strip the town center of its character and charm.

Meanwhile, the status of Citi’s applications to open a branch in the town have taken some unusual twists, and it remains unclear whether the bank still intends to pursue the Walden Street site it had selected.

Lois Venooker was notified in April that her lease at 16 Walden St. would not be renewed. Her business, Artful Image Inc., has been a fixture at that address for 17 years. It is one of two storefronts that property owner Concord Assoc. planned to lease to Citi. However, Venooker refused to leave. She said she has tried her best to keep the national bank from invading downtown and because it is inappropriate to have a national bank taking up storefront space on the historic street.

“It will destroy the town. It will destroy Walden Street,” she said. “It is a terrible thing happening.”

Other stores owners quickly joined the cause and began posting anti-Citi signs in their widows and at cashier stations. Even though Venooker’s 18 Walden St. neighbor, Renjeau Galleries, has moved out in accordance with the landlord’s wishes, a protest sign remains taped to the door, which one day could open to a Citi retail banking branch.

“I stayed so the bank couldn’t get in. I stayed to save downtown. I stayed to save Walden Street,” she said. “I told them I was not going anywhere.”

Venooker said her fight has probably run its course, however, since she has received several certified letters from the property owner to vacate the space. Although she was running her business with an expired lease, she said the landlord has continued to take rent money electronically from her account. She is planning to leave this fall and reopen in another location.

The Bulfinch Cos., the Needham-based parent company of Concord Assoc., refused to comment on anything involving Citi.

For the two storefronts to be combined and Citi to move into 16-18 Walden St, approval from the town’s Historic Districts Commission and Zoning Board of Appeals will be necessary. On Aug. 16, the HDC denied Citi’s proposal, both because the planned storefront was deemed inappropriate for that section of Walden Street and due to questions about combining two storefronts into one. On Aug. 28, the property owners submitted a new application on the bank’s behalf. However, later that day, an e-mail was received by the Concord Planning Department seeking to withdraw the application to the HDC.

“Citibank has terminated its lease for the tenant space located at 14-18 Walden St. in Concord and Concord Assoc. is not authorized to submit an application to the Concord Historic Districts on behalf of Citibank. Accordingly, we request that you reject the application for a Certificate of Appropriateness submitted this afternoon by Concord Assoc. to the Concord Historic Districts on behalf of Citibank,” wrote Timothy W. Sullivan, an associate at Boston-based law firm Goulston & Storrs, which is representing Citibank.

Also that day, an attorney for the property owner sent a letter via e-mail to the Concord Planning Department contradicting the first e-mail.

“Upon information and belief, Concord Assoc. understands that you may receive a communication from one or more representatives of Citibank, alleging among other things, that Concord Assoc. is not authorized to file the application. Please be advised that Concord Assoc. has not authorized Citibank to communicate with the commission on behalf of Concord Assoc. or otherwise with respect to the application, including without limitation, any purported amendment to, withdrawal or termination of the application,” wrote Alvin S. Nathanson, of Boston-based Nathanson & Goldberg, counsel for the landlord.

“However, Concord Assoc. hereby respectfully directs that you amend the application and delete all references to Citibank Â… so that the application and the commission’s records are clear that Concord Assoc. is filing the application solely on its own behalf as applicant for the requested sign and awning fabric replacement without any specific reference to any specific potential tenant.”

Sullivan did not return phone calls from Banker & Tradesman and Nathanson declined to comment.

City officials say the landlord cannot withdraw Citi’s application to the Zoning Board of Appeals. As of press time, Citi had not withdrawn its request and the ZBA hearing on its application has been rescheduled from Sept. 6 to Oct. 11.

Citi would not confirm that it is seeking to back out of its lease arrangement or that the bank no longer plans to pursue opening at the Walden Street location. However, a bank spokesman said Concord is an area where Citi would like to have a branch.

“Basically, we are still considering our options,” said Rob Julavits, spokesman for Citi. “Concord is a very attractive market. It is certainly a market where we would love to have a presence.”

Citibank took a somewhat unusual organic-growth approach in its expansion into Massachusetts, opening its first five Bay State retail branches in 2006 itself rather than seeking to acquire existing bands and branches. Julavits said the bank has plans to open 25 more branches by the end of 2007, bringing the total to 30. In addition to retail banking, the new branches will house Smith Barney investment divisions in an effort to create one-stop shopping for financial needs, he said.

‘Feel of the Town’

Speculation about Citi terminating its Walden Street lease agreement has reached the downtown business community, but shop owners and workers say they don’t consider the matter over and several said they have no intention of taking down the anti-Citi signs from their storefronts.

The Cheese Shop, across the street from Citi’s potential location, has been around for 40 years.

“The long-term health of the town is at stake,” said Peter Endicott, an employee of the store. “Concord is used as a model downtown. Let’s not lose that precious thing.”

“It was obvious we did have to get involved,” said Susan Bistany, manager of nearby North Bridge Antiques. “I think if they ever did approve it, they would never have grounds to turn down others. Our argument is not whether Concord needs another bank. It is about preserving our downtown.”

Jim Jones, president of First Wellesley Consulting Group in Wellesley, said there are two trends feeding into the discord in Concord. The first is the ongoing displacement of independent businesses from many communities to make room for higher rent-paying large corporations and chains. The second is that larger banks continue to seek growth by expanding into new, smaller and wealthier markets.

“In a number of affluent towns, there is this uprooting of the local independent stores,” said Jones. “The only difference with Concord is this trend hasn’t hit to the extent it has hit other towns. In Wellesley, we are certainly much further along in having the individual shop owners pushed out.”

Jones said larger financial institutions often do change the look and feel of a downtown area.

While Concord may be resistant to change, there are already several banking options in the downtown area. Middlesex Savings Bank, Cambridge Trust Co. and Bank of America, another national giant, all have branches in the center. However, the other banks do not occupy retail storefronts, but rather are located in buildings either designed for that purpose or less suited for traditional retail use. If Citibank does manage to take over 16-18 Walden St., from the sidewalk outside the door, Concord’s newest bank will be in eyesight of Bank of America. Jones said it is not uncommon to see banks clustered together.

According to Jones, given the high net worth of many of its residents, it was predicable that Concord would be one of the communities in which Citi would want to have a presence, especially given the inclusion of Smith Barney investment banking in its branch strategy. However, it is unusual to see so much resistance from a community over a bank, he said.

“It reminds me of Wal-Mart,” he said. “I have never heard of another instance where shop owners and residents are rising up to keep a bank out.”

Joe Roller, president and CEO of Cambridge Trust Co., said the campaign against Citi is not altogether surprising.

“People go to Concord for a reason,” he said. “Walk down the street; it’s the diversity and feel of the town [that attracts residents]. We thought the community pretty much full [with respect to] banks.”

Roller is a fan of downtown Concord’s unique array of small shops and has even made a purchase at Artful Image in the past.

“I understand the concerns of the community,” he said. “I don’t blame Citibank for trying to get into the market. I am not overly concerned about the competition factor. I can’t stop the flow. One more doesn’t make life easier. I would prefer a nice retailer over another competitor.”