Business Bombs

Word on the street concerning stupid business activities around the valley is something that can be amusing or downright annoying.

But business bombs come about due to a number of reasons. The business bomb that dropped in Fawnskin this week was the news that Ike’s Creekside will not be opening after all.

Now you know GG has been saying, “I’ll believe it when I see it.” And, true to form, the necessary repairs to the building will not be done and so the new business will not be opening.

As I think I have mentioned previously, unless the repairs are done, the place will not support a restaurant.

At least the business owners who were planning to make the move to Fawnskin were savvy enough to stop efforts to get open after only a minimum investment–and good luck to them in their search for the right place.

However, Fawnskin Folks are sulking over it. It was a hot topic of discussion all week and also gave people a sense of excitement, until now.

Something I learned recently was that the building also shares utilities with the residence next door.

Plus, I heard that the landlord actually turned down a solid cash offer for the property not too long ago.

So, basically he won’t sell and won’t do the improvements needed to get a business into the place and so it is likely to remain empty unless a non-food business can make it in the space.

Sadly, the business environment for the valley, not just Fawnskin, seems to only get more dismal.

Perhaps the vague promise by CalTrans to open Highway 330 at least will salvage  little bit of commerce and it is sure to be a relief to those having to commute during the limited hours the highway will be open.

Now last week the Dollar Tree finally opened its doors in the new location (a few doors down from where they were). The place was hopping and it is spacious–complete with frozen foods and refrigerated items.

But, truth be told, their new location leaves another vacancy in the Interlaken center whose management firm is based down the hill. When my pals were attempting to negotiate a space, the management group simply would not take anything less than what they were asking, and so the place remains empty still several years later.

In case you are not aware, the commercial real estate rental business up here is a bit insane.

When I ran my writing group out of one of the businesses in town, I was floored to find out that they were paying an escalating rent–to the tune of $4,000 per month plus utilities, wages, and what ever else was needed.

Another restaurant (Blonde’s) has vacated Big Bear and was also rumored to have been paying a rental nut of about $7,000 per month.

I also just heard the rumor that the Mandarin Garden may close sometime soon as well.

Remember Kenai’s Korner? Their demise might have been partially due to the fact that they put an estimated $70,000 (or so it is rumored) into building improvements on property they did not own prior to  opening.

It makes no sense to me to make capital improvements with your own money on a property that you don’t own.

Under capitalization, building repairs, property improvements, lack of customer spending, difficult access and other challenges are some of what mountain lake resort business owners face–but it just seems as if the valley has been in a downward spiral for some time.

Fawnskin is no exception.

Speaking of Fawnskin…

GG got a glimpse of the Calfornia Post Offices that are on the closure list–and Fawnskin is not among them.

Of course, the Post Master General will be making some announcements on March 25, 2011 related to operations but only time will tell what we will know for sure.

Crest Park (on the other side of the mountain) is on the list but when I originally wrote about the post office closures, a whole lot were not operating, or in unsuitable buildings, and that is certainly the case for that little station.

My speculation is that, due to delivery constraints and the heavy loads on the other local offices, a closure of our local little PO isn’t likely to happen–but of course, you never really know.

If scuttlebutt is anything to go on, we will probably see shorter operation hours (five days a week) and also incentives for long-standing employees to take severance packages so that newer employees (who receive lower wages) can do the work and help drop the expenditures on wages.

Finally, I hope you enjoyed the weather we had over the weekend. I always love weather changes when I don’t have to be out in it and I am certainly glad that I had done all the work in the garden and had the sense to store the bags so they were not out in the weather.

In case you have not checked your calendar, it is now officially spring so let’s hope we see some seasonable changes but at the moment my deck has over a foot of snow.

BTW The mail trucks have not yet been authorized to come up due to the snow and ice conditions. So sit tight or take some hot cocoa to Post Master Mike so he has something to do and someone to talk to!

Photo Credit: Pixel Placebo

 



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This entry was posted on Monday, March 21st, 2011 and is filed under Business & Commerce, Fawnskin Folk, Small Town Living.

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2 Responses to “Business Bombs

  • 1
    Mtngram
    March 21st, 2011 21:07

    Question: Are the landlords greedy? Or are the taxes so high that landlords must ask high rents to hang onto their properties? I honestly don’t know but would like to find out.

  • 2
    GG (Gossip Girl)
    March 22nd, 2011 07:03

    I don’t think it is a tax issue but let me know what you find out. Personally, I think they are delusional s to the value and the business environment around here. Makes little sense since rented properties actually bring in some sort of revenue versus being empty. (Many that I know about are owned outright.) I think in the case of the larger properties in the centers, it might be related to tax advantages.