Thursday, May 10, 2012

Rehabbing houses can prove to be costly

By Cortney Drakeford and Alana Ransom
BengalNews Reporters
   Real Estate Broker Dave Weitzel spent about $20,000 at the city auction for a vacant two story home at 458 Vermont St.
 His dreams at first were to make the two-story home a duplex but realized the challenges that came along with building a duplex when entering the property. His dreams may cost more than he expected.
  People like Weitzel can be presented with problems and costs they weren't expecting when they buy properties in the annual city auction.
  When Weitzel first saw the property, he did not realize there was a second house on the property. His dreams of a duplex soon changed to rehabbing both single-family houses.

 Real estate broker Dave Weitzel on rehabbing a Vermont Street property:


Weitzel says it has been a slow process on the house. There are so many issues with the home that need to be handled. Some for example are the electricity lines because a main power cord has been broken. Flooring and walls need to be fixed because of water-pipe damage. The basement is one of the main places that need fixing and ceilings in the houses need fixing as well. Walls will be broken down and new pipes and gas tanks will be installed in the home.
 Although Weitzel has made some changes, he still has a few issues with utility and other things in the houses.
 “Challenges building a two story home are trying to figure out how to separate the utilities and it doesn’t help when the utility company doesn’t know how to have water running throughout both houses because they do not know where the water line is for both houses,” Weitzel says.
 Weitzel plans for both houses to be almost ready in about three or four months. He set the selling price at $150,000.
They are not able to see the homes before purchasing them and are not able to see the conditions they have to deal with inside the homes.  Investors are able to go to the neighborhood and ask questions to people who have been around for a long time in the area to find out what kind of work needs to be done in the home. They also have to make sure they start working on the house as soon as they buy it because if the city sees no progress being made as investors promise, the city will take investors to city court.
  Before rehabbing homes, there is a process that has to be followed. First, the homes go into arrears, which are when two tax years have not been paid. Once property is cleared in arrears, then people will receive letters about the vacant homes. The city holds an auction presented by the chairman of assessment and taxation. Investors bid on the property. Bids start at $500. Twenty five percent of the money has to be paid on the day of the auction. The remainder has to be paid within that month.  Auctions are in October. Auctions are held at the Buffalo Niagara Convention Center.
  “The city produces a list of homes to be auctioned the first part of June and it can change up to the day of auction because owners can satisfy the bill. The fiscal year is July 1st to June 30th of the next year,” says Assessment Clerk Al Thompson.
  If no one bids on the property, the case is adjourned and the house goes back to the owner.  The tax law allows the city to foreclose property if it does not satisfy the tax bill. If by the end of year owners do not comply to pay with property taxes, the city enters an agreement preventing the foreclosure of a home until the money is paid.
  “Foreclosure in the city charges an increasing amount of money as penalty,” says Thompson.  Overall, many people feel houses being rehabbed are beneficial for the community.  “It is a good investment. When someone is beneficial they take care of the property and live in it. The houses are affordable for people who want to migrate to the West Side,” says Sean Mulligan, Legislative Aide to Councilmember David Rivera.
  Houses tend to stay affordable so low income families can stay in the neighborhood, he says.
  “People(s) views on the west side are changing. We let them come visit and they see what is being done for the community and quickly change their minds. They see that the West Side is a pretty nice place and are exposed to the diversity of people and the education system,” says Mulligan. Edited by Richard Cumpston

Monday, April 16, 2012

Grant-Amherst abuzz with business activity

By MacKenzie Clarke, Stephanie Delaunay and Cheri St. Croix
BengalNews Reporters
 There’s a neighborhood strip of unique  foods, art made by local artists and staple businesses that are recognized throughout the area, bordering the Upper West Side but it’s not the Elmwood strip.  Businesses like Spar's European Sausage Shop, Quality Bindery Services Inc., Graser’s Florist, Wegmans, and Nick’s Place; the Grant-Amherst area is built on a solid foundation that has lasted decades.
 There are also been an ample amount of new businesses bringing more people to the neighborhood within the last few years. Businesses such as 464 Gallery, Lucy Ethiopian Cuisine and Variety Store, Delish Cooking School and Pastry Shop, The JumpOff, Black Rock Kitchen and Bar, now call Amherst Street home as well.
 Owner of Delish Cooking School and Pastry Shop and member of the Grant-Amherst Business Association, Deborah Clark, couldn’t be happier having recently moved from Elmwood Avenue to 414 Amherst St. The area still steadily attracting new businesses shows the positive results of the work done by Grant-Amherst Business Association, and members as they receive incoming businesses.
 “They were just so welcoming and thrilled,” said Clark. “The new people who own new businesses here, the pride of the people who’ve had businesses for years; they have a really strong business association, and I think this is going to be a good spot to be in. I’m on the ground floor of something that’s really going to be really exciting.”
  While people in the area may know of the up and coming neighborhood, some may still be unaware of the hullabaloo surrounding the Grant-Amherst corridors, Clark said.
Dan Patterson staffs 464 Gallery, 464 Amherst St.
 “I think people are starting to realize that now. I think people are always in such a hurry to speed past because it is not as developed as some of the other neighborhoods. It takes a little extra work to get people over here; I don’t know if it’s a disadvantage, but it’s definitely a challenge,” said Marcus L. Wise, active member of the Grant Amherst Business Association and owner of 464 Gallery located at 464 Amherst St.
 The great location and affordable real estate make the Grant Amherst district a prime spot for business owners, said Mark Bojarsai, an employee of Black Rock Kitchen &Bar.
 The Grant-Amherst Business Association is firmly geared toward the revitalization and cleanup of Grant-Amherst Street area to induce growth into the neighborhood as well as entice patrons from around the city, said Wise. One of the many ways the Grant-Amherst Business Association attracts the public to the area, is the annual Rediscover Amherst Street Festival, said Wise.
 464 Gallery has found nothing but positivity from the area and exponential growth in business, since opening its door three years ago on Amherst Street. Wise is now looking to rent studios above his gallery.
“Business on Amherst Street is doing very well,” said Wise. “I think one of the big advantages of Amherst is that it’s still up and coming, so you can get in here, and you kind of have a little more room to make a difference and have a little more input as to how the neighborhood gets shaped.”
 New owner, Demetrius Williams, opened his retail clothing store, The JumpOff, located at 440 Amherst St. at the end of March and is looking to add to the economic growth of the area. Williams, having lived on Amherst Street, said the overall energy of the neighborhood drew him to open his business there.
 The JumpOff is already thinking ideas that would to add to the community, having the dream of hosting open mic nights for artists in the community. Being on Amherst Street gives us a lot of opportunities do things that you probably wouldn’t be able to do in a more established neighborhood, said Wise.
 “It seemed like a good place to open up and I want to do the best I can,” said Williams, hoping to generate a productive business that would ultimately add to the past and current growth of Amherst. “I want to bring people together.”

Saturday, March 31, 2012

Santasiero's serves up 90 years of business

By Pasquale Maggiore and Alexa Myers
BengalNews Reporters

  Amongst abandoned factory buildings and old parking lots, a building colored red white and green stands out. The sign reads, “Santasiero’s.” For West Side inhabitants, and even those all over Buffalo, this name means more than just a restaurant. Santasiero’s has lasted 90 years in a location that has seen many cultures and businesses come and go, and they plan to continue their success no matter what.
  Dominic and Philomena Santasiero moved to the United States from Italy in 1920. With their eight children to care for, they decided to open a restaurant right underneath their home. The business took off. Located on the corner of Lafayette Avenue and Niagara Street they were in a prime spot. Busy Niagara Street had commuters constantly driving by the small Italian restaurant. The population of the West Side was also predominantly Italian so the restaurant fit into the neighborhood.

John Brands Jr. , grandson of Santasiero's founder, talks about the family business:
 

  During the 1920s the Santasiero family was mostly focused on building up a reputation that customers could trust. The Santasiero’s dream when coming to America was to build a family-run, trustworthy business. And they did just that. Customer loyalty is still the most important aspect to keeping their business successful. Eventually Dominic and Philomena’s three sons took over the restaurant and were in charge until the 1970s. Their cliental only grew as time continued.
  As Santasiero’s flourished, the surrounding area saw big changes. The demographic of the West Side began to change, it was no longer mostly Italian. By the 1990s the West Side was mixed with all different types of cultures from all over the world. With more ethnically diverse businesses moving into the area, the little Italian corner restaurant continued to stand strong. Unfortunately, other area businesses were not as lucky. Sharon Boyd, who was been a server in the restaurant since the 1980s has seen the hardships and closures.
  “Businesses on Niagara Street should be thriving,” said Boyd. “There is so much traffic that goes up and down this street every day.”
  So what is the secret to keeping a business open for 90 years in a rapidly changing setting? The Santasiero family believes it is customer loyalty, quality food and reasonable prices. Their home cooked food is something that can speak for itself, as they have even expanded to shipping their products all over the country. John Brands Jr., grandson of Dominic Santasiero said.
  “We have to make sure that we are open over the holidays,” said John Brands Jr., grandson of Dominic Santasiero. “Because people who have moved away come back during that time, and this is the place they want to come.”
  The customer allegiance was easy to see as the restaurant began to fill up only moments after opening on a dreary Monday morning.
  The family also prides themselves on how well a family can eat at their restaurant without breaking the bank. The menu has classic Italian dishes along with other traditional favorites. Despite the economic drop, the Santasiero’s hasn’t had to raise its prices at all.
  “(The) economy hasn’t affected us that much,” said Boyd. “We still see new faces and the same people that have been coming back for years. I am on a first name basis with a lot of our customers.”
  Santasiero’s family restaurant history is unique and special. The restaurant is a West Side staple that continues to stay strong, and owners see no slowing down in sight.
Edited by Michael Hargrave

Saturday, March 17, 2012

Motor Works hoping business takes off

By Michael Hargrave and Shayna McKie
BengalNews Reporters

 Running a small business on Buffalo’s West Side involves more than simply creating a plan for making money. As Andre Sadoff and Dan Sciolino, co-owners of Buffalo Motor Works have found, businesses on the West Side need to be involved in improving the neighborhood.
  Buffalo Motor Works, located at 202 Rhode Island St., is a small auto dealership in the process of becoming specialized in energy efficient vehicles. With a green motto and focus on improvement, Buffalo Motor Works is reaching out to the neighborhood in more ways than one.
  “It is our hope to establish a community garden nearby,” Sadoff said. “This could promote neighborhood interaction, accountability and help to improve the vacant lot situation.”
 Sadoff, an environmental planning and design graduate of the State University at Buffalo, said he hopes by improving the neighborhood it will help to improve their business.
 But it’s harder than it appears.

Buffalo Motor Works co-owner Andre Sadoff talks about the challenges of going into business:


 Among their various challenges: an old disused building, city zoning issues, city hall bureaucracy and a lack of planning.
 “Starting a business is like trying to start a fire with wet wood,” said Sciolino, a former BMW mechanic and part owner of Buffalo Motor Works.
 These hardships are normal, said Bill Grieshober, a financial business advisor in the Small Business Development Center.
 “The big problem that most businesses have is that they have tremendous competition out there,” said Grieshober. “Even people who think they don’t have competition, have competition.”
 Grieshober recommends doing competitive analysis before starting a business to determine where the competition comes from. As Sadoff and Sciolino have found out, business is hard to find. The two have resorted to using Craigslist and eBay in order to publicize their business.
 In order to drive more business, and increase their profit margin, Sadoff and Sciolino have switched from selling pristine vehicles that they have restored, (no comma needed) to vehicles with damage.
 “We’ve gotten into some of the salvage vehicles just so we can stay afloat,” said Sciolino. “Some cars with damage go a lot easier.”
 The co-owners are also finding that their green dream is a bit harder to sell than they had originally hoped. Sciolino said that many people seem to be hesitant with second hand hybrid vehicles, especially the battery.
 “We are looking to offer a battery warranty in the future” said Sciolino.
 Mostly Sciolino said he regrets not putting more time and effort into the initial planning stage of their business. Issues such as cash flow and a lax business plan have hampered their ambitions.
 One of the bright spots for the pair is the building that they occupy. While it is in a certain state of disrepair, the former Chrysler dealership, has a massive amount of space, as well as some of the original flooring which dates all the way back to the 1920s.
 Sadoff said he has received many compliments from the community, words of thanks for putting the old building to use again, as well as words of encouragement for the two young entrepreneurs.
 “They’ve got to get out into the market and publicize, not advertise, publicize” said Grieshober. “Get out into the community and let people know they are there.” Edited by Alana Ransom

Friday, March 16, 2012

West Side eateries buy local to save costs

By Elaundress Ballard and Christie Jok
BengalNews Reporters

 Sweetness 7 Cafe and Boomerang’s Bar & Grill have found the key to running a successful business and the secret isn’t too far from reach.
 The two businesses continue to thrive on the West Side largely due to their dedication of ordering products from local farmers and manufacturers in the Western New York area.
 Prish Moran, owner of the Grant Street cafe, says she’s able to keep her prices at a fixed rate mainly due to cutting out the middle man and dealing directly with farmers and manufacturers.
 Moran utilizes different farmers in the area depending on which farm is able to provide during a certain season and based on availability.
 She prides herself on using almost all organic products for her cafe goods. But, according to Moran, organic farmers don’t have enough resources to provide one restaurant for all the produce and dairy products they need. Moran said she orders from 12 local organic farmers for her goods.
 Moran said she also receives goods from an even closer provider in the area - Guercio & Sons Inc., located right across the street from the cafe. Sweetness 7 uses Guercio’s for fruits and vegetables especially in the summer when they are out of season, Moran said. Lorigo’s Meating Place also across the street, provides the cafe with paper products such as wraps and bags, Moran said.
 Moran is satisfied with her local providers because it has allows her to keep prices consistent and avoid a “trickle down” due to using resources from farther away.
 “The trickle down happens when people get their food from outside sources. I even have my coffee roasted locally. The kid even comes by on his bicycle when the weather is good from the roaster. It’s pretty awesome,” Moran said.
 And despite the rising gas prices in Buffalo over recent weeks, Moran said her cafe prices will not be affected.
 “Buying local is huge and there’s so much to be said about local organic farmers,” Moran said.

Tom O’Keefe, manager of Boomerang’s, discusses the impact of gas prices on the restaurant:


Boomerang’s Bar & Grill also takes full advantage of local providers. Tom O’Keefe, manager, said by using local providers for the restaurant’s fish, dairy and liquor products, the restaurant's menu items are able to remain at a consistent price range of $5 to $10, except for the 14 ounce strip-steak which is $14.
 Schneider’ s Premium Sea Food located in Cheektowaga and Willowbrook Farms on Clinton Street in Buffalo are two of the main providers, O’Keefe said.
 The restaurant receives orders of fresh seafood either every day or every other day depending on the need for more products, O’Keefe said.
 Products from Willowbrook are often picked up by a Boomerang’s employee while Schneider’s will deliver to the restaurant, O’Keefe said. The delivery charge of $5 but if the order hits a minimum, it’s free of charge.
 The farthest distributor to the restaurant is Yuengling in Pennsylvania, O’Keefe said.
 Like Sweetness 7, Boomerang’s is not changing menu item prices due to rising gas prices.
 “We may be affected by it, but we won’t raise our prices because we get people who drive in from Clarence, Williamsville, and Amherst. If they spend the money to drive here, we’re not going to tag on another charge for them. We’re not going to raise our prices for the gas prices going up,” O’Keefe said.
 Local products may help keep Boomerang’s Bar & Grill thriving, but there are patrons from distant regions willing to make the trip to the restaurant.
 Barbara Smith and husband Joe, residents of Fort Erie in Canada, have been coming to Boomerang’s for over six years.
 “The food is excellent, the staff is fantastic and what can I say? The meals are great and the prices are very good,” Smith said. Edited by Alana Ransom