There is great irony that a laundromat that serves working class and poor constituencies is apparently being forced out to make room for a Goodwill and Goodwill Express location.
As Darrell Smith of the Sacramento Bee reports this morning, “That leaves residents in the neighborhood facing an odd irony: They will have a place to donate and buy clothes, but one fewer place to wash them.”
The sign on the door reads: “To all of my friends that have used my Laundromat for 40 years, I would like to thank you. The landlord has given me 30 days.”
And that means what exactly? It leaves Laundry Lounge as the only coin-operated laundromat left in Davis.
If there is an area of Davis that would seem to need a place for people do their laundry at a public facility, it would seem to be this area where East Eighth meets Pole Line Road. After all, from Grocery Outlet to Dollar Tree, the Davis Manor center seems to cater to the needs of the neighborhood.
It was just last year that the laundromat located at the Westlake Plaza closed, citing, among other things, the high rents imposed by the landlord.
The problem that presented for my family was great. It left us, last year, with just our apartment facilities to clean the clothes. The problem there was there were limited numbers of machines to serve a large complex, combined with the lack of upkeep.
Laundry Lounge is an excellent facility, but for people without cars, it, too, presents a problem.
They offer a pick-up service which is good and convenient. The problem is that, to do that, you are no longer just paying for the cost of the wash, you are paying for their service, which adds up quickly, at a given price per pound of laundry. For a typical family, a trip to the laundromat could cost $75 to $100, as opposed to $20 or $40 for just the cost of the machines.
The Bee reports, “Newer apartment buildings are required by city code to have at least one washer and dryer for every five units, but tenants in older buildings do not have the same access.”
They quote Wash Mill’s owner, Sharon Miller, who lays out the problem completely.
She told the Bee: “The older homes don’t have washers and dryers, and there are apartment (buildings) with only one washer and dryer… There are a lot of people who work swing shifts. People come in from West Sacramento. They say, ‘You’re the only place that’s open 24 hours.’ “
It gets worse. Ms. Miller told the Bee that the closure was unavoidable, “Davis Manor’s landlord, the San Diego-based Byers and Co., gave Miller her 30-day notice last month to make way for Goodwill, the center’s new anchor tenant.”
Amazingly, the president of that company, Mark Bitterlin, told the Bee that the closure was “not my problem.”
The Bee added, “Trying to attract and keep tenants in an aging discount shopping center with no anchor and a 30 percent vacancy rate is a tough bit of business, too, he said. When Goodwill Industries came calling with a request for a 10-year lease for 6,600 square feet of space, Bitterlin was quick to move.”
“It’s the first time in four years that the center will be 100 percent occupied,” Mr. Bitterlin said, “It’s too bad that (Wash Mill) had to go, but it’s for the greater good,”
Unless, of course, you have nowhere to do your laundry and no transportation.
At this point, this has to become a city issue. This is a community that has lamented the lack of affordable housing, has taken on great resources to bring in new affordable housing, but lacks the amenities necessary for the working class and, increasingly, students to be able to conduct their lives.
The city needs to step up and figure out a solution.
Ms. Miller said that the city may be able to help if she chooses to find a new location, but she believes relocating to be out of the question, estimating a cost of $150,000 to move her facilities to a new site.
Moreover, simply moving to another location does not solve the problem – the problem is that the community, that neighborhood, needs laundry facilities nearby.
The city, as usual, seems caught flat-footed by what can only be described as a crisis.
Sarah Worley is Davis’ economic development coordinator. She told the Bee that residents have expressed concern about closures of laundromats in the city.
“There is certainly a demand. We received many emails from the community – not just in the neighborhood. The demand still exists,” she said. “Our hope is that someone will respond to that market demand.”
The residents of that neighborhood do not need excuses from city hall, they need the council and city staff to be proactive and fix this problem.
If they don’t, residents will have a huge quandary with no easy solution.
—David M. Greenwald reporting
“The residents of that neighborhood do not need excuses from city hall, they need the council and city staff to be proactive and fix this problem.”
So what can the city do? Are they to tell the mall owner that he can’t rent that space to Goodwill with them possibly losing the revenue from the new anchor tennant? Is the city going to start dictating to mall owners what stores it must have and how much rent it can charge?
“they need the council and city staff to be proactive and fix this problem.”
What options do you see for the city staff and council in this situation.
I am wondering if this would not be an opportunity for Goodwill to partner in some way with the existing business, much the same way many Safeways have partnered with Starbucks ?
This closure raises a number of questions in my mind.
First, in reference to rusty49’s comment: Will the City of Davis, in fact, gain revenue from Goodwill? Does Goodwill collect sales tax and pass it on to the state and local entities? I ask because my understanding is that Goodwill is a non-profit. Can someone enlighten me about this?
Second, if Goodwill does generate revenue for the City, how does it compare with the laundromat?
Third, did the laundromat pay its bills? I have no evidence that it did not. If that is the case then it is being asked to leave for no other reason than the owner wants to offer the space to an entity that will not move there unless it can have the extra space. If, there is a demand for the laundromat, then the owner’s decision cannot be considered “for the greater good.”
Fourth, for those who believe that “the market” will take care of everything, doesn’t this situation demonstrate how markets DON’T work sometimes? It would appear that this particular market failure has to do with high barriers to entry–a classic problem for capital intensive businesses trying to break in to a market.
Fifth, doesn’t the City guide decisions about what types of entities can inhabit certain spaces through zoning codes? Didn’t the City demonstrate its ability to guide space use decisions with the Davis Diamonds decision?
I used to use this very laundromat when I lived in South Davis and it was the only one nearby. When we got rid of our dryer, it was the only place to dry clothes during those eternal foggy days of winter (which we don’t seem to have any more). I could say more about the importance of laundromats for travelers and homeless individuals (think about the size of washer and dryer needed to wash or dry a sleeping bag) but will stop here.
Robb, I always have to pay sales tax at the SPCA thrift store in Davis.
I think it’s a good question as to what the council can do. This is part of the problem certainly with not having RDA money anymore. One thing the city can look at is whether their requirements for apartments is sufficient. Another thing would be looking into grant money for retrofitting more laundry facilities at older apartment complexes. Those are two things the council can do immediately and is well within their authority.
[i]Amazingly, the president of that company, Mark Bitterlin, told the Bee that the closure was “not my problem.”
[/i]
I guess I’ll stop donating to Goodwill.
“[i]The residents of that neighborhood do not need excuses from city hall, they need the council and city staff to be proactive and fix this problem.[/i]”
Nonsense! The City has no business getting involved in this situation, other than to remove zoning restriction that would inhibit another laundromat opening in town. Past meddling in these decisions is in part what gives the City such a bad reputation for business.
This center was forced to leave its anchor site empty for years because the City inappropriately restricted the type of store that could use the space. As long as the owner didn’t break a lease with the existing tenant, there is no reason to interfere with this business decision.
If there is demand for another laundromat in town, one will open.
Mark West:
“If there is demand for another laundromat in town, one will open.”
And then, if there is a greedy, slimy landlord that will roll over 40 years of a good tenant serving an obvious demand, it will close.
“[i]This is part of the problem certainly with not having RDA money anymore.[/i]”
How so? The center was not included in the area specified for the RDA so I see no way that those funds could be used to address this situation. How exactly do you see the existence of RDA funds helping here?
[i]”Davis Manor’s landlord, the San Diego-based Byers and Co., gave Miller her 30-day notice last month to make way for Goodwill, the center’s new anchor tenant.”[/i]
Although I am sympathetic to Sharon Miller, the owner of the Wash Mill, and her customers, it likely was the case that Ms. Miller chose to have a month-to-month lease, and that put her at risk of having the lease terminated against her will. She very likely could have (when the anchor tenant space was empty) signed a long-term lease with an option for an extension for even more years.* If she had done that, the owner of the mall could not just tell her to vacate in 30 days.
RD: [i]”Fourth, for those who believe that “the market” will take care of everything, doesn’t this situation demonstrate how markets DON’T work sometimes?”[/i]
You’re right, Robb, that the market, at least until a new laundry opens up, will not solve this problem. That said, the owner of the laundry at Anderson Plaza does offer pick-up and delivery service.
It’s also worth pointing out that our city’s planning process makes the commercial market somewhat dysfunctional. It has the effect of removing or reducing competition. For example, if we allowed the market to function fully, sharon Miller could lease or buy a 1,500 s.f. house in the East Manor neighborhood and convert it into a coin-op laundry. But our laws, for good reason**, don’t allow her to do so. As a result, the owner of the Davis Manor Mall has a government-granted monopoly on commercial leasing space in the Davis Manor neighborhood.
——————–
*I formerly was in the commercial real estate development and leasing industry, and it was almost always preferable to sign a tenant to a long-term lease as opposed to a month-to-month lease. The reason for this is because it is normal (due to the tax laws) to take out all of your “profits” from a rental property of this sort by borrowing against its future income. If you have secure tenancies, your assessed value (against which you borrow) will be higher.
In case anyone is interested in the tax implications, consider Example A and Example B where you own a $24 million property (real income value) which generates $100,000 per month in net rents:
A. You have no debt on the property. You are in the 35% tax bracket. Your annual income from the property is $1.2 million. Your annual tax owed is $420,000. Your after-tax income is $780,000.
B. You have a $20 million (6% interest only) loan on the property. Your interest owed each month is $100,000. Your monthly and annual pre-tax income is $0. Your tax owed is $0.
The advantage of A. is you have almost no risk and you are able to pocket $65,000 a month after-tax. The disadvantage is you pay 35% of your profits in tax.
The disadvantage of B. is you will have substantial risk (especially so if your tenants cannot make rent and the market is soft). The advantage is that you pay no tax and you can pocket [b]the entire $20 million tax-free.[/b] Let me re-state that: the $20 million you took out in a loan is tax free! That is one reason why many real estate developers/managers make a killing.
** Good reason to zone against non-conforming uses? Yes. The reason is that a commercial operator would draw traffic to the residential neighborhood for its own benefit. However, that would impose a cost (mostly on the quality of life) of the owners/tenants of the neighboring houses, and it is next to impossible to efficiently pay those neighbors the right amount of money to make it worth it to them to allow this non-conforming use in their neighborhood. Yet, there is an alternative to strict zoning laws. We could require instead an arbitrator to determine how much loss, if any, each neighbor suffers when a new user moves in and the arbitrator would then require payments to cover those losses in each case.
[quote]If there is demand for another laundromat in town, one will open. [/quote]
This is just a small part of the problem encountered by what David has called ” the other Davis”. I suspect Mark, from your comment that you are a member of the more affluent portion of Davis as am I now. However, I remember graphically the challenges the pertain to being part of “the other”.
If you have ever lived in an inner city in this country ( I have) you will recognize this as far too simplistic a statement. There are many places where there is demand for goods and services, but in which no store or service will open for a multitude of reasons, not the least of which are unreasonably priced rents, perceived inability to make as much profit as desired ( note I did not say as much as needed to be profitable), a desire for a more upscale location, and I am sure many more that have not come to mind for me immediately since I am not in business. The second unrealistic part of your statement is the inclusion of the words ” in town”. A service being “in town” does not mean that it will be accessible to the population that is in greatest need of the service.
So, my question to you is, when the needs of a community are not being met by “the market”, who else if not the government, should step in to help ?
“If there is demand for another laundromat in town, one will open. “
It seems like there was demand and need for this one, it was profitable, and yet unrelated to demand, it was forced to close. How does you comment account for that.
[i]”There are many places where there is demand for goods and services, but in which no store or service will open for a multitude of reasons, not the least of which are unreasonably priced rents …”[/i]
Rents charged are never higher than the market will bear. If they were, the space would be empty.
What may be the case is that the demand for the business in question is not very strong, but the demand for some other type of business is stronger, and hence the latter business is willing and able to pay the rents.
Governments affect rents by affecting the market power of a landlord. If the government liberally allows new developments or business uses for existing properties, landlords will have less market power and rents will be lower. If governments tightly restrict uses or prohibit new competing developments, the landlords in place will have added market power and will be able to drive rents up (but not higher than the best use is willing/able to pay).
Most of the anti-market policies in Davis are reasonable and bring with them benefits to those of us who live here, especially to those who are well-healed and established. However, most of the cost of these anti-market laws is paid by would be-newcomers and those with less money, such as customers of the Wash Mill.
“the owner of the laundry at Anderson Plaza does offer pick-up and delivery service. “
I mentioned this. It is a nice service which we took advantage of prior to moving into our present home with a washer and dryer. The problem is that it is very expensive.
Dear Sacramento Valley Goodwill Staff ( Mr. Mark Klingler and Mr. John Sweet):
Below, you will find an E-Mail that my wife and I wrote to the Davis City Council concerning a situation potentially involving Goodwill that can have a severe and negative effect on the low-income community residing near the Manor Mall in east Davis. If Goodwill intends to expand the former All Things Right and Relevant Thrift Store Site which it has recently leased at the Mall, it will disenfranchise The Old Mill Stream Laundromat, a vital resource that the low-income community has depended on for over forty years.
This result would not only be unfortunate, but would also appear to conflict with the Goodwill Mission Statement to be an asset to low-income people. As a good will gesture, we are asking Goodwill not to expand their recently leased site within the Manor Mall into the existing Old Mill Stream Laundromat site.
Thank you very much for your consideration in this matter. Continued Blessings, Steve and Pegi Hayes,
Steve & Pegi Hayes
1803 Poplar Lane
Davis, CA 95618-1520
wtrbug00@aol.com
(530) 758-4416
All that is needed for evil to triumph is for good men (and women) to do nothing.
Edmund Burke
——————————————————————————–
From: Wtrbug00@aol.com
To: mayor@cityofdavis.org, dwolk@cityofdavis.org, lucasf@cityofdavis.org, blee@cityofdavis.org, rswanson@cityofdavis.org
CC: wtrbug00@aol.com, osuproud@aol.com
Sent: 1/2/2013 11:56:19 A.M. Pacific Standard Time
Subj: Please Consider Preserving the Old Mill Stream Laundromat
Dear City Council Members
My wife Pegi and I were disturbed to read in the Davis Enterprise recently that the lease for the Old Mill Stream Laundromat is being terminated as of January 6, 2013 to make way for an expansion of the site of the former Right and Relevant Thrift Store to suit Goodwill, another thrift store tenant within Davis. This action will have a serious and negative impact on the low-income community surrounding the Manor Mall complex in East Davis. The reasons are as follows:
(1) The Old Mill Stream Laundromat in the Manor Mall has provided an essential laundering service to East Davis families for over 40 years. My wife and I have used the Laundromat on occasion over the years to wash and dry large items such as comforters, blankets, and sleeping bags. Whenever we used the facility, we found it very busy, with many hard-working mothers washing loads and loads of family laundry while also tending to their young children. Many of these mothers also haul their laundry to and from the Laundromat in carts because they live within the many apartment buildings located nearby along East Eighth Street, and lack access to an automobile;
(2)Within the Laundromat, we always found the atmosphere busy, purposeful, and friendly. Overall, the Laundromat has a “humble, homey, and community center” atmosphere. As such, this vital, family owned small business should be cherished as an asset within Davis,and should not be extinguished as a liability; and,
(3)In general, laundromats are scarce within a community in large part because they are equipment and maintenance intensive, and primarily serve a low-income clientele. They are, however, a critically needed resource because they provide users with the means to clean clothing and other household items. Clean clothing in particular, is an essential element in one’s overall effort to maintain good personal dignity, cleanliness, and health.
From our perspective, it appears to be unwise to close the family owned Old Mill Stream Laundromat to make way for yet another thrift store within Davis. There are other thrift store options within Davis (SPCA, Right and Relevant, etc) to meet this general community need.
Thank you for your attention in this matter. Hastily, Steve and Pegi Hayes
Steve & Pegi Hayes
1803 Poplar Lane
Davis, CA 95618-1520
wtrbug00@aol.com
(530) 758-4416
All that is needed for evil to triumph is for good men (and women) to do nothing.
Edmund Burke
One option for the longer term would be to allow the owner of the Davis Manor Shopping Center to construct new commercial space on his property, perhaps in the northwest or southwest corner.
[img]http://3.bp.blogspot.com/-v3iRrQZ7ZXc/UOct9XNkZvI/AAAAAAAAAzY/imsot7TelmA/s1600/davis+manor.JPG[/img]
Medwoman: “[i]If you have ever lived in an inner city in this country ( I have) you will recognize this as far too simplistic a statement.[/i]”
I lived and/or worked in inner city Baltimore for nearly nine years, but that has no bearing on my comment. Davis Manor is my neighborhood center and my family shops there on a weekly basis. Despite that, whenever I have needed commercial laundry service I chose the Laundry Lounge because they offered better service and a facility that was clean and obviously cared for by the owners and on-site staff. In my opinion, not only will the Davis Manor shopping center be improved by the addition of a new long-term tenant, but also by the removal of what has often been a poorly maintained storefront. The Goodwill store will have a much more positive impact on the neighborhood than the laundromat ever did.
“when the needs of a community are not being met by “the market”, who else if not the government, should step in to help?”
I just don’t see this as an unmet community need. Old East Davis is not an inner city slum so we should stop thinking of it as one.
Don said
[i]Amazingly, the president of that company, Mark Bitterlin, told the Bee that the closure was “not my problem.”
I guess I’ll stop donating to Goodwill. [/i]
Are you blaming Goodwill for the remarks of the landlord?
In the interest of completeness, I am reposting my E-Mail to Goodwill Sacramento. Goodwill should be offered the opportunity to make a “Good Will Gesture” in this matter.
From: Wtrbug00@aol.com
To: markk@goodwillsacto.org, johns@goodwillsacto.org
CC: wtrbug00@aol.com, Osuproud@aol.com
Sent: 1/3/2013 7:48:06 P.M. Pacific Standard Time
Subj: Goodwill, Please Make Good Will Gesture to Save the Old Mill Stream Laundromat
Dear Sacramento Valley Goodwill Staff (Mr. Mark Klingler and Mr. John Sweet):
Below, you will find an E-Mail that my wife and I wrote to the Davis City Council concerning a situation potentially involving Goodwill that can have a severe and negative effect on the low-income community residing near the Manor Mall in east Davis. If Goodwill intends to expand the former All Things Right and Relevant Thrift Store Site which it has recently leased at the Mall, it will disenfranchise The Old Mill Stream Laundromat, a vital resource that the low-income community has depended on for over forty years.
This result would not only be unfortunate, but would also appear to conflict with the Goodwill Mission Statement to be an asset to low-income people. As a good will gesture, we are asking Goodwill not to expand their recently leased site within the Manor Mall into the existing Old Mill Stream Laundromat site.
Thank you very much for your consideration in this matter. Continued Blessings, Steve and Pegi Hayes,
Steve & Pegi Hayes
1803 Poplar Lane
Davis, CA 95618-1520
wtrbug00@aol.com
(530) 758-4416
If the landlord, understandably, prefers a 10 year lease over month to month and if the city says its hands are tied, then that leaves Goodwill itself to pressure about this. My call to 800 GOODWILL did not get me contact info for their chair, but did get me the number for the local Goodwill headquarters and the information that the local Goodwills are all independently owned. So I called (916) 395-9000 and was put through to Dinorah, who listened and said she took notes and would pass my comments along. I urge others to call this number and speak to Dinorah, too. While it is not guaranteed that a lot of calls could change things now, it can’t hurt.
In the meantime, I am trying to track down some good contact info for Tommy Moore, Jr, of Houston, TX, who was elected head of the Goodwill International board of directors on October 11, 2012. http://www.goodwill.org/press-releases/houston-business-leader-to-chair-goodwill-industries-international-board-of-directors-2/ The business number I found for him got me forwarded to someone else’s voice mail, so I am still looking for a direct way to contact him. Despite the apparent lack of a chain of command that could force the local Goodwill to back off the Washmill site, I am hoping that Goodwill International values its ‘brand’ enough to bring pressure on the local to not wreak this hardship on the residents of East Davis.
Last, doesn’t Goodwill already have a Goodwill Express donation site near Jade Garden on Spafford Court? If so, can’t they just keep that one and leave the Washmill alone?
[quote]Amazingly, the president of that company, Mark Bitterlin, told the Bee that the closure was “not my problem.”[/quote]
Bitterlin’s comment may sound callouss but it is true. Bitterlin’s company is not responsible for community planning. How did nobody see the issue when there was only one coin-op laundry left in town. Did nobody say, “What happens if this one closes?”
I have a small amount of experience with these lease deals and there is always more to the story. There had to be some reason a new tenant looked more attractive. While it is unfortunate that it will be more difficult to do laundry the city has no business getting involved other than making it easy for another laundromat to open.
Until another laundry opens True Value should stock up on wash boards. Bet nobody thought about that option.
R&R was fine with the amount of space that was there. I’m sure Goodwill would be, too.
Steve: Thanks for the local Goodwill email contact information.
Don S. “[i]R&R was fine with the amount of space that was there. I’m sure Goodwill would be, too.[/i]”
If your contention is true, why then did R&R move into a larger space? And why did Goodwill request more space? Doesn’t sound to me like your assessment fits the facts.
If the City feels that access to laundry services is an important community need, then the obvious way to address that need is to require access to laundry facilities in all residential rental units. We already require this of new apartment complexes, so this would be a case of ‘leveling the playing field.’ The downside of course will be the impact this change will have on rents in the near-term as the landlords pass this new expense on to the tenants. This may or may not be a good idea, but it is a far better approach to dealing with this perceived problem than what is being proposed by many here.
The three Davis apartments complexes I lived in had laundry facilities, none were new in the 70’s (one broke ground in 1949). Did the newer complexes not put in laundryrooms, have complexes been closing laundryrooms, or what?
“If your contention is true, why then did R&R move into a larger space? And why did Goodwill request more space? Doesn’t sound to me like your assessment fits the facts.”
Great point Mark. If the laundromat wanted to secure its future it should’ve signed a long term lease when I’m sure at some point they had the chance. If you’re renting month to month you take your chances on either losing your local or having to pay higher rent.
“If the City feels that access to laundry services is an important community need, then the obvious way to address that need is to require access to laundry facilities in all residential rental units”
I suggested as much. But how do you go about retrofitting?
“If the laundromat wanted to secure its future it should’ve signed a long term lease when I’m sure at some point they had the chance.”
No, doubt that’s true, but that’s a different issue than the suggestion that there is no community demand for laundry facilities.
Also, we don’t know that they had the option of more than a monthly lease.
[quote]Rents charged are never higher than the market will bear. If they were, the space would be empty.
[/quote]
Agreed as far as you have gone. However, it is also true that some spaces do stay empty for long periods of time. I believe that if this occurs for a long enough period and there is deterioration of the property, the name we apply to that is “blight”. Now, I certainly am not making the claim that this is what is occurring in this instance, nor am I commenting as though I consider East Davis, where I myself lived at one point, to ghetto conditions. But some of the comments here seem to ignore the fact that the loss of this particular business is going to make life significantly more challenging for some of our neighbors who can’t just hop in their car and drive to a more distant laundromat, nor pay the additional money for delivery service.
medwoman wrote:
> some of the comments here seem to ignore the fact
> that the loss of this particular business is going
> to make life significantly more challenging for some
> of our neighbors who can’t just hop in their car and
> drive to a more distant laundromat…
Many small apartments in town have coin op laundry machines and odds are that the people in East Davis that are upset about the Wash Mill closing can contact the owners/managers of apartments near where they live and can probably find a place where they can get permission to use a coin op washer and dryer in a laundry rooms that is even closer to their homes than the Wash Mill.
[quote]Newer apartment buildings are required by city code to have at least one washer and dryer for every five units[/quote]
It appears that this government regulation lowered demand for laundry services so that we have only one laundromat left in town. Unintended consequences is a perpetual problem for central planners.
[i]”However, it is also true that some spaces do stay empty for long periods of time.”[/i]
There could be a number of reasons for this to be true. But one of the main ones is zoning. Excessively high rents almost never can be the cause. Only a terrible business operator would charge more than anyone can pay. And that sort of business(wo)man won’t last in business.
Very often a local government wants a certain type of business, say a supermarket or a laundry or a bank, in a given commercial space. But demand for those uses can shift away from the site in question. When that happens, the zoning regulations are the primary reason a space will stay empty for a long time.
In Davis, we have dozens of examples with this. None better is with what happened to the Anderson Bank Building in the 1970s. It sat empty for about 9 years. It was zoned for banking, and the Bank of Sacramento (which had earlier bought out the Bank of Davis) closed up shop, and the zoning in Davis would not allow another use. So until the owner of Barney’s Good Time Music was allowed to move in and sell records there (he also sold marijuana pipes and other head-shop gear), after the zoning was relaxed, the Anderson Bank Building deterirated badly, right at the corner of 2nd & G.
Another example in Davis is what took place at the Oak Tree Plaza (Pole Line & Covell) Shopping Center at the old supermarket space, originally Fry’s. It sat mostly empty for many years. There was plenty of demand for supermarket usage by customers in that neighborhood. But the city’s zoning laws, which restricted the size of the space to be uncompetitively small kept out tenants.
Once the city changed its zoning rules to match market reality, Nugget built its present large store (taking over where a pizza parlor had been), and Nugget has succeeded in that long-time empty space. That shopping center has never had a vacancy problem since.
There are, of course, non-zoning reasons why a shopping center can have long-term vacancies. One (which we don’t really have in Davis) is a free market, where new competition comes in to a periphery, and shoppers all prefer the new location, and the old one effectively becomes obsolete. This has happened in low-income areas of a lot of cities, especially big cities.
When this sort of problem arises, the big question is what use in the empty space will still work. If zoning is rigid, that might cause a real problem, as the old uses may have lost all purpose.
What normally happens–sometimes quickly; sometimes many years later–is a good entrepreneur buys the obsolete shopping center and finds new tenants who will re-purpose it into something it never was in the past. An old supermarket, for example, might be re-made into an ice-skating rink. In some cases, the obsolete shopping center is best torn down and perhaps new high-rise apartments will work in that property.
The key is to allow flexibility. If a government refuses a repurposing of an old property, it will deteriorate in place and won’t find new uses for which there is demand. This is especially sad when the structure has some historic value.
“It appears that this government regulation lowered demand for laundry services so that we have only one laundromat left in town. Unintended consequences is a perpetual problem for central planners.”
Actually I think that’s untrue. There is no indication that this laundry facility was unprofitable. And the reason Soap City left was not profitability but they got tired of dealing with the land lord.
[i]”The Bee reports, [b]”Newer apartment buildings are required by city code to have at least one washer and dryer for every five units[/b], but tenants in older buildings do not have the same access.”[/i]
FWIW, I just looked this up in the city code and could not find anything specific to confirm that claim by the Bee. The language I found that in the code which is close is this regards a condo conversion: [quote][b]36.13.060 Condominium conversion standards.
[/b]
(g) Laundry facilities. A laundry area shall be provided in each unit, or, if common laundry areas are provided, such facilities shall consist of not less than one automatic washer and dryer for each five units or fraction thereof.[/quote] A different section, [b]18.09.050 Checklist of universal design features[/b] has a reference which might be what The Bee was referencing: (g) Laundry area features. The following universal design features related to the laundry area of a dwelling unit shall be included in the checklist: (4) Accessible appliances, specifically washer and/or dryer.
I am not sure if that specifically means that a building must have a washer and dryer or, if it does, it must be equipped to meet the needs of people who are handicapped. Its source is [b]Ord. 2321, 2008,[/b] but that is not online.
Re: Monthly Lease
According to Miller, she wanted a year lease.
[quote]Miller said she’d been on a month-to-month lease for some time.
“I tried to get a full (year’s) lease. I don’t want to order equipment if I don’t have a lease,” Miller said. “Then I was informed in early December that I had to get out.”[/quote]
[Davis Enterprise] ([url]http://www.davisenterprise.com/local-news/the-wash-mill-spun-out-of-davis-manor/[/url])
If Miller does not want to relocate, what is she going to do with the washing machines if the store closes?
I am looking forward to Goodwill’s reply to Steve Hayes’s email. Maybe Goodwill had no clue that there was a situation, that they would simply change the store size.
Grocery Outlet, Dollar Tree, Goodwill, and a Laundromat would have been a great combo.