By JOSEPH KELLARD
“And they’re not spending money. They are paying down debt or they are saving.”
Weitzman has been talking to various organizations across the county, including the Long Beach Chamber of Commerce at its monthly meeting, attended by some 70 members, at Matteo’s restaurant in the West End on Feb. 24.
The comptroller’s take on Long Beach is relatively rosy when compared with other towns. “It looks like Long Beach ... is doing better than some of our other communities,” he said, pointing to the few empty stores in the business district as evidence.
Weitzman told the group that over the past few years there have been more than 1,000 foreclosures in the county, which has nearly 400,000 homes. “For the people involved, it’s a tragic situation but it’s a small percentage of the total,” he noted.
Predicting the economy is like predicting next week’s weather, he said, but he does foresee a continuing shift among consumers who, instead of buying homes and spending in general, are paying down debt and saving money. “In the long term, savings is very good for this country because the more people save, the more capital is available for industry to invest, which makes us more competitive,” Weitzman said. “But in the short term, it creates tremendous difficulties, especially for retail businesses.”
The problem, he said, is that Nassau is among the nation’s largest retail consumer communities, with 40 percent of its sales tax revenues going to county government.
Weitzman explained the county’s plans for enduring the economic crisis, particularly County Executive Tom Suozzi’s proposals to cover a sales tax shortfall of $100 million. The comptroller advises small businesses, first and foremost, to watch their cash closely. “Because it’s difficult to get credit,” he said, noting that people nationwide are having their existing sources of credit cut off.
Next, he suggests that businesses closely monitor their inventory, and look for opportunities in these hard economic times. “Because Long Island is a small-business economy, which is driven by well-educated, risk-taking entrepreneurs, they have to be alert to opportunities that are coming out of these economic challenges, like acquiring competitors,” Weitzman said. “In chaos there is opportunity.”
Debbie Bernstein, a financial advisor with Edward Jones Investments who works with several small businesses in Long Beach, said she was encouraged by Weitzman’s talk. “I think we have a really great location, a great community that is quite diverse, and I guess we just haven’t suffered like the rest of the country,” Bernstein said.
She cited the chamber’s growing membership and its well-attended networking events as signs that business is still healthy in town.
Chamber President Michael Kerr said that while a few small businesses have closed due to the economic downturn, they weren’t necessarily major or established operations, and most businesses are at least staying afloat. “We’re very fortunate and happy that our businesses are doing business,” Kerr said. “Are they doing the same amount of business? Of course not. But in many cases they’re paying their bills and drawing a salary.”
Looking ahead, Kerr said he expects the city’s restaurants to do well this summer, and will get an early start, since many of them have agreed to reinstitute 1999 prices during restaurant week, from April 17 to May 2.
Chamber member Joe Ponte, however, is not as confident that the near future bodes well for Long Beach businesses. A real estate agent with Prudential Douglas Elliman on West Park Avenue who attended Weitzman’s talk, Ponte said that city restaurants probably did well last summer because many people stayed local, thanks to $4-plus gas prices.
“Small business did pick up based on the higher price of fuel,” Ponte said. “But now we’ve hit a situation with inflation all around and job layoffs. A lot of people work in the city and the banking industry, and because of the layoffs they’re cutting back to maintain their homes and cars. By cutting back, it does affect the small store owners.”
Ponte said he is concerned that as a result, more stores will close in the coming months. “Their five- to 10-year leases are locked in with high rent,” he said. “A lot of the leases were predicated on good economic times. I think you are going to see more and more stores closing or changing hands.”
Comments about this story? JKellard@liherald.com or (516) 569-4000 ext. 213.
