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Small businesses fight to survive

Wazoo Records owner John Novak works in his store Thursday afternoon. Wazoo, 619 E. Grand River Ave., is located in Stonehouse Village, a group of buildings that has recently seen several businesses come and go.

After nearly two decades on the block, John Novak said he has witnessed many a small business' rise and fall on Grand River Avenue.

Novak reopened Wazoo Records, 619 E. Grand River Ave., two months after former owner James "Jim" Lindsey passed away in March 2003. Before that, Novak worked in the used compact disc, vinyl record and video shop for 12 years.

Since then, Novak said, a drastic turnover of small shops has turned many away, and an economic downturn has cut down foot traffic even more.

"Now, it's a struggle to stay alive," he said. "I notice when businesses disappear, it is almost always a unique little shop that's independently owned."

Wazoo Records is located in Stonehouse Village, a complex housing a number of restaurants, apartments and other businesses. Novak said Wazoo's business continues to slide, and he considered moving his shop to an area placing rent at a "more reasonable rate."

"To try to reestablish yourself somewhere is tough," he said. "I'm just going to try to survive here, at least for a while."

Some establishments securing retail space in the area have not lasted long.

Another compact disc and video store, Lower Level Records, 611 E. Grand River Ave., closed up early in 2003 after more than three years in business. After five years, Blue Note Coffee Café, 623 E. Grand River Ave., left after a contract dispute with Cron Management, which owns Stonehouse Village, in late 2002.

Roly Poly, a Georgia-based franchised sandwich shop, opened in the Blue Note spot in March 2003, but "closed down for vacation" last month, co-owner Rick Price said.

But a sign indicating the building is up for lease sits in the front window.

In the past year, Millennium Digital LLC, 611 E. Grand River Ave., also has shut down.

Vietopia Cafe, 611 E. Grand River Ave., which opened in August, also might join the list. Late last month, the shop closed unexpectedly. A white note reading "We are closed today" remains hanging in the cafe's door.

Stonehouse Village contains at least 14 retail spaces, said Stephanie Gingerich, East Lansing community and development analyst. Some tenants have expressed difficulty in paying Stonehouse Village's market rent and staying afloat despite competition, said Jessica Johnson, manager of Super-Tans, 617 E. Grand River Ave.

"If there was a problem (paying rent), it was just hard to keep customers," she said.

Cron Management officials did not return repeated calls to their offices last week.

City officials also have taken rapid business turnover downtown into consideration.

Jim van Ravensway, East Lansing's director of planning and community development, said the Embassador program, sponsored by the Downtown Development Authority, annually monitors city businesses to determine endurance and success.

The city's Small Business Rental Assistance program, initiated in 2002, was designed as a business retention tool to support struggling independent retailers, van Ravensway said. The program provides $10,000 each year to aid eligible small local businesses in paying rent or amenities.

Although three local businesses were selected to receive funds last year, the program is not a grant system available to all retailers, van Ravensway said, adding that the program provides monetary support to help small shops "stay here and keep going."

"The market's been tough on everyone," he said. "Some businesses have managed to do well in this environment and some have not."

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