Economy slows down development in Rainier Valley
Light rail’s expected business boom still alive with hope
■ Local residents get a closer look at the light-rail station at South Othello Street and Martin Luther King Jr. Way South during Sound Transit’s safety fair and open house last summer. According to a city study, nearly three-fourths of the businesses in the area have stayed in business despite the construction impact. photo provided by Sound Transit
After five years of construction, Sound Transit's light rail is nearly up and running. As the anticipation continues to build for a debut this summer - the agency has July 3 circled on its calendar - business can finally resume as usual in the Rainier Valley.
That was the hope, at least, until the economy began its downward spiral. Now, small-business and home loans are virtually impossible to come by.
For some, the challenging economy presents opportunity for growth, especially in the Rainier Valley. Martina Guilfoil, executive director of the Rainier Valley Community Development Fund (CDF), is one of those optimists who works directly with business owners to reach their goals.
"We're not slowing down. This is a great opportunity to get in front of rapid development," said Guilfoil, who has spent the last 22 years working in affordable housing before joining the CDF last year. "We're working directly with the business owners and the community to see how they are dealing with the economy."
MAJORITY STILL IN BUSINESS
The CDF was founded in 1999 to aid in the business district's transition through Sound Transit's construction phase. Nine years later, its focus has shifted toward the assistance of new and existing businesses in the area.
"We are a little concerned about development. None of us really knew how much the economy would affect new business," Guilfoil said.
But with stimulus dollars arriving, the CDF offers grants and capital for businesses impacted by light rail.
Of the 310 businesses impacted by light rail's construction in 2004, 81 of them closed for good. Since the city collected that data a few years ago, 74 percent have stayed in business. According to the city's Office of Economic Development (OED), that number is impressive, especially considering market conditions.
"[Seventy-four percent] is a number that we're excited about," said OED communications director Karin Zaugg Black. "We think that's a great testament to the vision of CDF. It's a great opportunity for those looking for lending in the Southeast [neighborhoods].
"Within the OED's offices, there has also been a shift in focus. "We're having to reprioritize what we do in within the office," said director Steve Johnson, speaking of the economic downturn as it affects the office's goals. "Now, we're helping businesses form alliances with each other and the community so that we can act collectively."
THROUGH DIVERSITY, A SHARED VISION
The Rainier Valley has long been characterized by its diversity of residents. With an abundance of mom-and-pop stores catering to their individual communities, business districts within the valley share a piece of that reputation.
Along with industrial and maritime businesses already in existence, the commercial climate in Southeast Seattle is unique.
"It's crucial that everyone in the community come together and be clear about the vision," said Nora Liu, senior policy advisor to Mayor Greg Nickels. "A shared vision will promote healthy, vital businesses in the Rainier Valley.
"Last weekend, the city's Department of Neighborhoods had its first community workshop with residents and business representatives invited to join the conversation. It's the first of a handful planned within the area to discuss its vision in the post-light-rail era. "We're moving from a traditional business model in the region to one that can service the community in a number of different ways," Johnson said. "From the strip-mall model to mixed-use facilities."
DAY-TO-DAY CONCERNS
Currently, the OED is in the midst of a four-month retail study of the region - Rainier Valley as a whole - to characterize what kinds of businesses exist and what opportunities are possible.
"One of the goals is to identify retail leakage and why people are going elsewhere [to shop]," said senior community development specialist Tina Vlasaty. "[At the March 14 meeting] a lot of residents expressed their concern about the variety of grocery stores, shoe stores and those types of businesses."
Still, the economic downturn has owners concerned with day-to-day progress. The OED said it's working diligently to assist businesses in any possible way.
"Small business aren't thinking about the future so much as they're thinking day-by-day," Vlasaty said. "They have been through a lot during construction, and the economy isn't making it any easier. It's our job to give them the tools for success and to bring them together for discussion."
For now, there is little movement for new business in the area, though Guilfoil and city officials remain positive. Already, the CDF has provided more than $15 million in assistance to 178 businesses. With her organization's commitment to development, she cannot help but look beyond the economy's dark cloud.
"There is just so much potential out there," Guilfoil said. "Now, the focus is working with business toward development."
