MD

News

Monday, May 27, 2013

Advertise with us »

Area owners say Zaragon hasn't had major impact on business

BY AUSTIN WORDELL
For the Daily
Published October 13, 2010

Though the East University Avenue community has seen an uptick in foot traffic since the construction of the Zaragon Place luxury apartment complex, business owners are saying that the increase hasn’t necessarily translated into an increase in business.

In a series of interviews with The Michigan Daily, local business owners and managers reported it has been business as usual, despite Zaragon Place housing almost three times as many residents as the Anberay Apartments, the building that was demolished to make room for the Zaragon complex. And whether it’s the result of an uneasy economic climate — a common belief among several store managers — any positive effect of the increase in students living in the area is minimal at best, several businesses said.

Nick Brudnak, manager of the local popular Italian restaurant Mia Za’s, said his restaurant hasn’t seen any increase in overall business since Zaragon Place went up, adding that a poor economy might be offsetting any benefits from the apartment complex.

“We haven’t seen any measurable increase that I can say is due to that building (Zaragon Place),” Brudnak said. “That isn’t to say the economy hasn’t balanced out what is happening next door.”

However, Brudnak said the business has seen a small increase in its sales since the East University sidewalk reopened after the demolition of Anberay and construction of Zaragon Place. During Zaragon’s construction, the sidewalk was completely blocked off by 15 feet on each side of the building, and many stores on East University did not get as much foot traffic.

Sabrina Hirachian, owner of YCI Clothing, a high-end women's clothing store located on South University Avenue, said that while she hasn’t seen an increase in sales, she finds the additional housing to be a positive contribution to the area.

"I can't say that Zaragon is the cause for any increase in business, but I think that it is good for business,” Hirachian said. “I think it makes the street very attractive."

Hirachian added that the economy is still a little slow to bounce back and it might be canceling out any benefits of the nearby Zaragon residents.

“It’s still too soon to know,” she said.

One reason local businesses may not be seeing an uptick in business, despite a swell of students living in the area, may be because Zaragon Place came with two attached businesses.

Revive and Replenish, located on the main floor of the apartments, were part of the approval process for Zaragon Place. Revive is a coffee shop and deli that prepares its own food, while Replenish sells beer, wine, cheeses and some essential groceries.

Dick Schubach, one of the owners of both Revive and Replenish, estimated that during the school year, 80 percent of his customers are students and that a significant number of those students come from Zaragon Place.

“It’s been a very enjoyable symbiotic relationship," Schubach said. “It’s great for the kids and it’s great for us.”

Joe Schlenke, a longtime employee of Espresso Royale on South University, said he believes the stores that opened with Zaragon Place have added competition to coffee shops in the area.

"I have seen the diversity of our clientele increase a little bit, I haven't noticed any sales boost,” Schlenke said. “I think there is a little more competition."

But Zaragon residents say they are taking advantage of Zaragon Place’s central location and frequenting shops in the area.

LSA sophomore Udae Sandhu, a Zaragon Place resident, said he believes tenants of the apartment complex are likely to be more affluent than other students, which is probably good for area businesses.


|