For Sale: Not Cheap

Dear Lompoc, DO NOT MISS THIS OPPORTUNITY. 

For the low, low price of 10.6 million dollars, you could own a nice little strip mall. Here's what it looks like:

Familiar?

A couple of weeks ago, this ad was in the Pacific Coast Business Times, a Santa Barbara-based weekly. (What? Not advertising in the Lompoc Record??)  I'm told that it's been on the market for about a month, this time.  It was for sale about a year ago, then taken off the market.

(Just so you know: I have no affiliation to The Lompoc Plaza, no financial stake in it, I don't want to buy it, nor do I know who owns it except that it is someone Not Local. I do have a special place in my heart for middle-aged strip malls, so the ad caught my attention.)

I took a wander down to The Lompoc Plaza and spoke with several of the tenants there.  My primary questions: Did you know that the shopping center was for sale? and Are you concerned about it? Four of the business owners I interviewed - and another I heard from later - didn't know anything about it. On the other hand no one was terribly surprised.  Emily Vargas-Smith of Vargas Jewelers shook her head with a little laugh.

"Again?" She asked. 

When I mentioned the listing price - $10.6 million! - Vanessa Vargas rolled her eyes and Emily pointed to the tire-sized pothole out her window. She said, "I think they're going to have to fix it up first!" 

The shop owners I talked to weren't optimistic about The Lompoc Plaza's chances on the market.  Two other tenants, who didn't want to be named, also had complaints about basic maintenance.  One said, "This place is in such bad condition - good luck getting a buyer!" Another told me he's currently on a short term lease, he has a couple of "issues" with shopping center management, and he definitely won't stay if his rent is raised. 

Bob Scanlan of the Box Shop, who, he says, is usually "in the know" before the rest of us, had just heard about the listing from an unnamed source.  "It doesn't bother me, though, because I'm locked in for the next 18 years." That's one 5-year lease with three 5-year options to renew, and that's some serious long-range planning!

Rose Isaac, owner of Anything Athletic and Rose's Embroidery, has owned her business for 27 years and was an employee of the shop before that, back when it was Pico Sporting Goods. Now she has three years left on her lease in The Lompoc Plaza, and her shop is for sale.  She's working with two prospective buyers, but if she can't make a deal, she'll just close her door when the lease term ends.

Rose says she wants to be careful about who takes over.  "I want to sell it to someone local, because only the community can understand this place." 

Rose knows first hand, what happens when "local" goes out of town.  She remembers when a local guy owned the Plaza.  Lately... well, she's seen the "bank men" come and go with their clipboards and calculations, and she wonders what the current owners are doing with the rent checks they're collecting.  (Definitely not fixing potholes.)

I went to the Radius Group website and found a nice packet of information about The Lompoc Plaza. 

On page 1, for example, I learned that The Lompoc Plaza offers a 6.2% CAP rate, which is less than you might get from the stock market in a good year, but way better than a CD from Lompoc Community Bank.  ( "Home of..." what kind of banking?  Seriously. Get a new tagline.)

According to Radius, The Lompoc Plaza has nothin' but potential.  From page 1, this quote:

The proximity to other shopping and being on a main thoroughfare bring value to the underutilized nature of the center and present an opportunity for repurposing the center for greater retail exposure. 

Say what?

On page 2, Lompoc High School has been demoted to a Junior High.  How embarrassing.

On page 3, you may note that Vandenberg is spelled with a "u," but on a positive note the arrow IS pointing in the right direction.  The vacancies (indicated by asterisks), haven't been updated since Attitudez Salon and Spa relocated to a brand new space at Northside Lompoc.  Back in June.

All this, it makes me worry.  That some unknown person/entity might buy this shopping center without knowing how to spell Vandenberg or find the local high school. I wonder if he/she/it may want only to take money OUT of Lompoc, without putting money IN.

Here's what I think, Lompoc. BUY THIS STRIP MALL.  It could be a cooperative enterprise.  If 300 people contribute $20,000 each, they could make a solid offer of $6 million.  Or 600 people, $10,000 each.  You get the idea.  If it's managed well - i.e. LOCALLY - the member-owners will make enough money to do some updating (repave the parking lot, maybe?) and still turn a reasonable profit.  (Consult with the Lompoc Cooperative Development Project on this.  They've already launched one successful co-op, the Green Broom Brigade.  The Lompoc Plaza could be Lompoc Co-op #2.)

But wait.  What if not all investors can afford a steep $10K or $20K buy-in, but they still want to contribute? I have another idea. Form an REIT.  This structure allows for different investors to contribute different amounts.  Each share could cost $100 and investors could buy "shares," like they would of any stock.  I don't know much about forming a REIT, but it can't be that hard: there's even an "eHow" article with six easy steps!

I'm not kidding, Lompoc. If your commercial property is owned by out-of-towners, there's a pretty sizable chance that those owners care less than you do.

"Space vacant for ten years? Whatever. It's a tax write off." 

Rose is right about this. Sell to someone local: someone who understands and cares about the community.

Shop Lompoc Shop Small

Hey, Lompoc!  I asked Robin Dunaetz to write a guest post for the Biz Buzz, because Small Business Saturday is just a week away now, and Robin is the brains and the beauty behind Shop Lompoc Shop Small (SLSS). 

She will be embarrassed that I wrote that, but anyway.  Because.  However much credit Robin gets for her work in the Lompoc business community, it's not enough, and so I'm going to pile on.  Robin owns Surf Connection (which is one of the coolest stores in Lompoc), she started Lompoc's Cash Mob, and then she started Shop Lompoc Shop Small. And then, with co-organizer Heather Bedford of Graphic Systems, she organized the first "Sip Lompoc" in May.

So, next Saturday.  November 29.  A week from today.  What will you be doing?  Thursday is Thanksgiving, and Black Friday is the biggest shopping day of the year.  If you want to be part of the craziness, I can't stop you.  But what about Saturday? Why don't you get out, enjoy our little town, and meet your neighbors?  And, by the way, spend some money.

But wait, there's more: Start on Friday afternoon with Sip Lompoc, and you can spend some money ON WINE.

Here is Robin's guest post, which explains the history behind SLSS and what's happening this year.  Notice she uses a lot of passive voice in para #2, because she's trying to avoid taking credit for anything.  "A preliminary plan was put together... A meeting was scheduled... businesses were invited..." Robin Says:

Shop Lompoc! Shop Small! is an organized effort, supported by the Lompoc Chamber of Commerce, dedicated to the promotion and support of all the locally owned small businesses in the Lompoc Community. It is our belief that a strong local economy is dependent on the health of our locally owned small businesses.

The journey of Shop Lompoc! Shop Small! began with Lompoc Cash Mob in February of 2012 as an effort to recognize and support locally owned businesses that give back to our community. Nine Lompoc Cash Mobs later the vision was to mob as many Lompoc small businesses as possible on Small Business Saturday for November’s Lompoc Cash Mob. A preliminary plan was put together which involved asking participating businesses to have a special promotion for the event and a list and map of the participating businesses would be provided to the shoppers. A meeting was scheduled and businesses were invited for input and to gage interest. From the initial meeting the finalized plan of Shop Lompoc Small Business Saturday was born.

Our next Shop Lompoc Small Business Saturday is scheduled to coincide with American Express Small Business Saturday on November 29th. Enjoy the day exploring the Lompoc business community with over 40 locally owned small businesses offering specials and discounts all day long. Pick up a map at any participating business or the Lompoc Chamber of Commerce, visit 6 participating businesses (no purchase necessary), have your map validated and you can enter to win a 'Shop Lompoc Shop Small' gift bag filled with a variety of wonderful items from the participating businesses. Visit more businesses, complete more maps and have more chances to win!

My Sip Lompoc glass from the May event.

This year the community fun starts a day earlier, on Black Friday, November 28th with Sip Lompoc, because you can’t drink flowers! You are invited to have an afternoon of discovery, fun and relaxation as you wander through Lompoc, sipping wine at over 19 participating tasting rooms and wine bars. You will be provided a beautiful Sip Lompoc logo glass and a map to help guide you around to some of the best tasting rooms of the world! The event is from 2PM to 6PM, so enjoy your afternoon and get your holiday wine shopping on!! Tickets can be purchased in advance at Graphic Systems, D'Vine Wine, Lompoc Chamber of Commerce, Surf Connection, Lompoc Community Education Foundation Board Members and online at FirstStreet Tickets. Partial proceeds will go to the Lompoc Community Education Foundation, a 501C3 supporting students and the Lompoc education system. Check in for Sip Lompoc is at Southside Coffee Company on the day of the event, November 28th, from 1PM to 4PM, 105 South H Street.

Thank you for joining us on this journey! You can follow us on Facebook at Shop Lompoc Shop Small, Instagram at Lompoc_Life, Twitter @Lompoc_Life, or email us at lompoccashmob@gmail.com, and remember make every day a Small Business Saturday!

Thanks, Robin, for being a guest writer for the Biz Buzz, and for all your work supporting local small businesses. 



Click on "Get Notifications," and look for the checkmark to verify.

If you are a small business owner (or supporter) on Facebook, do this.  "Like" Shop Lompoc Shop Small.  (The page has almost 1000 "likes" right now.)  When you click on "like," the drop-down menu offers "Get Notifications" - select that.  (You want to hear about what other businesses have going on, don't you? And you ARE, of course, going to "like" or comment on some of the posts that you see, right?)  Then, when you have something special going on at your business, "tag" SLSS.  (P.S. Learn how to tag.) The tag is a cue for Robin - she will probably "share" your post on her page, so more people will see it.

Here's the thing, Lompoc: IT'S LIKE ROBIN SAID.  If you want economic development in Lompoc, you need to spend your money here.  Pass it on.  Both the money, and the buzz.



Fish and Beer

In addition to the two businesses I mentioned in my inaugural post, there are at least two others that Lompoc is dying to hear more about.

Soon.  Maybe?

First, "Are there any micro breweries here in Lompoc?"  Well, no, not YET.  But as many Facebook commenters have mentioned, there are strong rumors buzzing around.  The story is, Solvang Brewery has purchased (or leased?) the old Ford dealership and is coming to Lompoc.

I want more info!  Is City Planning already involved? What's the timeline? Are they opening a restaurant or are they going to focus on production? Tap room? What are they going to call it? Timeline? Who are the owners? Why are they expanding now? Why Lompoc?

I'm going to try to find out.

Second, "What's happening at the old Red Zone?"  Well, apparently, it has something to do with fish and Leroy. I heard the building sold for $499K and I can see, just passing by, that they're doing a ton of work on it.

It's all about Leroy.

Don't you want to know?  Aren't you WILDLY curious? Who is behind the project and how are they funding it?  What are they thinking? What are they hoping?  What are they bringing to Lompoc? Who is this guy, Leroy? What's the STORY?

I WANT TO KNOW.

Judging by the forums on Facebook and informal conversations with other business owners, I'm not the only one who wants better biz buzz.  I understand that there are times - usually when a deal is in progress - that the principals don't want to make anything public.  But, hey, "everybody" knows what's coming to the old Ford Dealership and the old Red Zone.  They're on our radar.

So: what's the scoop?

Is it idle gossip I'm after?

Here's the thing. Small business owners can make better decisions about their businesses if they know what's going on around them.  It's called Situational Awareness.  If you don't have it, you're likely to miss opportunities, or to encounter obstacles that you might have avoided.

Here's another thing.  You're more likely to "Shop Lompoc, Shop Small" if you know the "moms and pops" who own these mom-and-pop businesses.  There is a certain sense of obligation, when you're a member of a community.

And one last thing. If the local business scene is some big mystery that only the well-established and the in-crowd can access, it excludes many who contribute to the economic development of the city.  Are you one of Lompoc Valley's self-employed: a micro-business owner, solopreneur, a home-based business owner?  You need to be recognized and included in the conversation, and you need to be well informed.

My purpose, here, is to serve as a source for you to find out what's happening in the local business community.  This blog, I hope, will open up the conversation by asking: What's the Buzz? What's the story? What's happening?

Buzz about Biz

Hey look!  They're on Facebook!

Today I went to TWO grand openings in Lompoc.  TWO new businesses, in one day - BOOM.  I think this is a Big Deal for my little hometown.

I heard about these businesses on Facebook.  (Business owners: if you are serious about reaching your customers, you need to be on Facebook. Go ahead and secretly believe it's the most ridiculous thing you've ever heard of - but that shouldn't stop you from jumping on board.)

First, I stopped by The Coveted Closet, which is on H ST, in the Albertsons shopping center (between Albertsons and the old Mervyns).  It's a classy-looking shop.  The focus is on juniors; the vibe is young and fresh.  Prices are good.

Then I went to the new Pool Lounge on E. Ocean (same strip center as the Budget Cafe).  I chatted with the friendly owner, Cliff, and admired the beautiful pool tables.  He has applied for a liquor license (beer only) but will be open to kids as well, age 14 and up.  A place for teens to hang out!

Lots of folks excited about playing pool in the Poke.

Cliff is old school.  Doesn't know about social media, and doesn't take credit cards.  Sigh.  Still, I heard about his business on Facebook.  The grand opening was posted by a good citizen who wanted to help him get the word out.

What I've noticed, hanging out on the local forums, is that many of us are hungry for Biz Buzz.  We want to talk about it. We want to know: what's happening where?

"What's going in the old Mervyns?"

"We should have a bowling alley in town!"

"We need a good steakhouse!"

"When are we going to get a [insert your favorite chain restuaurant or store here]?"

I'm a small business owner in Lompoc who wants more and better biz buzz.  Case in point: I want to know more about these two new businesses.  Who are the owners?  What are their stories?

If you want biz buzz too - if you want to know what's happening where - if you want news and in-depth stories about Lompoc business, subscribe to this blog via the email subscription link, so you'll know when I put up another Buzz. 

Click here to read my next post; find out what two other businesses I learned about on Facebook.