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Valley Home Sales Increase in January

January home sales in the San Fernando Valley increased 12.8 percent from a year ago, but new and existing homes sales were down 34.3 percent from Dec. 2009, according to the latest statistics from the San Fernando Valley Economic Research Center at CSUN.

The month-to-month drop is largely attributable to January and February historically being slow home sales months, said the report.

There were 1,108 sales in January, compared to 1,687 in Dec. 2009 and 982 in Jan. 2009. The Valley’s median price of a single family home has increased by an average of 1.4 percent per month since reaching a market low of $347,500 in March 2009.

January’s median price of $398,750 is up 13.3 percent from the Jan. 2009 price of $352,000. But it dropped slightly from December 2009’s median price of $400,000, said the CSUN report.

Southland Regional Association of Realtors, which only tracks resale numbers and covers a different geographical area than CSUN, reported a total of 698 closed escrows for Valley single family homes and condominiums in January. This compares to 873 closed escrows in Dec. 2009 and 684 in Jan. 2009.

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Glendale ideal due to tax structure and location.

Anyone who walks down Brand Boulevard in Downtown Glendale can’t miss The Americana. The trolley tracks. The tall buildings. The high end shops reminiscent of The Grove.However, just a few short feet away all over the downtown area a variety of much smaller businesses, both in physical height and comparative size provide a stark contrast. According to Eric Olson, president of the Downtown Glendale Merchant’s Association, over the years quite a few of these smaller businesses have opened and closed in the Downtown Glendale Area since he joined the association in 2000.

Walking around downtown there seems to be quite a few niche or specialty businesses lining the streets that are making it through the recession. Each of these are niche businesses but a common thread is they have some tie-in with culture and the arts. Officials of Abril Armenian Bookstore, Mystery and Imagination Bookstore, Metzler’s Violin and Left Coast Wine Bar & Art Gallery were interviewed to get their perspective on how it is being a small niche business. In each case it seems the secret to the relative success of these businesses lies somewhat in their choice of very specialized offerings and their location in Glendale. The city is ideal for niche businesses, according to some of the businesses interviewed, because of its tax structure and location near the San Gabriel and San Fernando valleys as well as the rest of Los Angeles.

Abril Armenian Bookstore

Abril Armenian Bookstore is run by owner Harout Yeretzian, 66, and his son, manager Arno Yeretzian, 33. The store sells a variety of books in English and Armenian, some geared towards Armenian topics such as children’s books, cookbooks, Armenian women’s studies and Armenian genocide-related books (fiction and nonfiction). The shop actually has two complete sections devoted to the topic. They also carry Bibles and books to learn English and Armenian. The Yeretzians started off publishing an Armenian language magazine for about five years before Harout said he realized there was no money in it. Then while publishing the magazine they realized there was more money in being a printer so they started printing brochures, taking up the space next door. This evolved to opening their store in Hollywood and publishing their own books. They then moved their store to Glendale in 1998 to follow the movement of the Armenian population to the area.

“This is a bastion against assimilation,” Harout Yeretzian said. “Without language it’s very hard to keep the national inspiration [alive].”

Abril is the oldest Armenian bookstore in Glendale and the only store not overseen by a larger organization such as church or a political group. They also say they were the first Armenian bookstore. According to Harout, they opened a similar bookshop in the North Valley but because there was no Armenian community there it could not survive. According to Harout, between 100 and 120 customers make their way into Abril weekly.

According to Arno, the largest market for the store are people in their 50s to 70s. He divided the demographics into “the third and fourth generation who speak Armenian and English, the older Armenians from Armenia who buy a lot of Armenian books and women who buy a lot of health books.”

He also said there are the occasional collectors. In this economy, Arno said the sales have been low for the past two years. He said Amazon is one of the only places whose sales increased because people are trying to save money and buy things from home.

However, because his store is so specialized Arno only says the larger stores are his competition in the English language books.

The Yeretzians said they have customers from all over Southern California as well as tourists who have read about their store on their Web site. They said there store is the largest Armenian bookstore in the world, including Armenia, because Armenians are so scattered throughout the world.

“A lot of people refer to us as a cultural center. People all over the world now have heard of Abril Bookstore.”

In addition to the books, the bookstore has readings and presentations twice a month, which brings people into their shop.

Although Abril is located several blocks from the Americana, this mom and pop shop has its own opinions about it.

“I’m not that into the Americana,” Arno said. “It’s this outside thing that they put into Glendale. Everywhere else is more similar [small businesses]. It’s not really Glendale to me.”

Mystery and Imagination Bookshop

Just a few blocks away on Brand Avenue is the Mystery and Imagination Bookshop, a science fiction, mystery, horror and fantasy bookshop. Vintage posters line the walls for “Clockwork Orange” and “Fahrenheit 451.”

Co-owner Christine Bell is married to shop owner Malcolm Bell. Christine stopped periodically throughout the interview to assist customers and answer the phones, but with good reason. Following the recent Economic downturn the shop had to lay off 12 of its employees last year and is down to just Malcolm and Christine.

Bell, a Maryland transplant, told the story of the bookshop, which opened on Hollywood Boulevard in 1976. She moved out to California in 1986. The store is the brainchild of Malcolm Bell, at the time when he started his bookshop there were no other genre bookstores, but according to Christine it quickly changed.

“Science fiction was considered sub-literature at the time,” Bell said. “It was unpopular. Not so anymore. It’s one of the most advanced and philosophical of fiction.”

Bell says they have customers coming from all over Southern California and they are more of a destination than a foot traffic type of shop.

“It really is special,” Bell said. “No one else is going to have that “Bleeding Edge” anthology by a special publisher that no one else is going to have. The authors here are all grouped together. These are very special authors.”

Just like Abril, they also host events in their bookstore. When Bell was asked how these events affect business she said “I hope it helps.”

“Sometimes they’re so focused on the event that they don’t buy anything else,” Bell said. “That’s the idea that they will buy some other things. Sometimes it works and sometimes it doesn’t.”

Bell said her store has a relatively flat front and people can’t see her.

“It really is a destination shop,” Bell said. “I don’t get very many people wandering in off the street. A few people wandered into the gym and didn’t buy anything because I’m so specialized.”

Bell said because of the economy they have had to adjust by selling more $3 paperbacks to make up for losses in $15 hard covers. To the Bells this also means longer hours.

Metzler Violin Shop Inc.

At a shop just south of downtown every inch is filled with string instruments, bows, sheet music or string music related kitsch. The instruments range from children’s violins, to cellos, violas and bases

Thomas Metzler, owner and President of Metzler Violin Shop Inc., is a 59-year-old Iowa native who moved out to California at age 26 in 1976. After college Metzler traveled to Southern Bavaria where he learned violin making for four years, after which he went to work for a violin shop in Hollywood.

In 1979 he opened the store Metzler and Ravinas with his partner who has since moved to Oregon, on Broadway in Glendale. In 1983 they moved to their current building, a much larger 1920’s-era building.

Metzler’s is one of only five to six violin shops in Southern California, and the only one in Glendale, according to Metzler. There is a smaller shop in Pasadena run by just one person.

Nowadays they said they do repairs and rentals. They also do Internet sales of sheet music, which was Tom’s wife Barbara’s idea. They started this Internet expansion six years ago. They are now working on getting accessories and pictures of instruments online although they encourage instrument shoppers to come in and hear the difference between the different instruments.

He divides the markets of his shop into teachers and students, professionals and amateurs. He says oftentimes the professionals have had their equipment for a while. However, some amateurs spend a little and some spend a lot but are “easy to work with.”

“Of course we love the kids too,” he said. They host a master class for kids taught by professionals.

Metzler said about 20 percent of their revenue comes from rentals while the rest comes from instrument, sheet music and accessory sales.

In this economy Metzler says he thinks being a niche business has helped him.

“Businesses that are too broad are too easy to go under,” Metzler said. “Even in hard times people are passionate about music. Even if they don’t need it to stay alive they need it for their soul. There aren’t many people catering to what we’re doing.”

Metzler said he only considers the larger more generalized music stores to be competition at the low end of the spectrum.

“They have so many problems,” Metzler said. “They come with broken strings and broken bridges. We just give that market to whoever wants it.”  Rachelle Ryan thought of the idea for a combined wine bar and art studio based on her art gallery in Studio City on Ventura Boulevard. Ryan is originally from Oregon. She thought opening a wine bar and art gallery would be a great idea, according to Fulton. They often use the wine and art to cross-market between the two parts of their business. The example was most recently when Lisa Semlar of Malibu Family Wines sold her art and did a wine tasting at the same time.

Their location just outside downtown Metzler says at times he can feel “invisible” in the community.

“People say I drove by for 20 years and never knew you were here,” Metzler said.

However, Metzler thinks that Glendale is a draw for niche businesses because it is “more friendly.”

“It doesn’t have the same business tax structure,” Metzler said. “Although that was never one of the reasons we considered coming here I have a feeling Pasadena would be too.”

Metzler mentioned a harp store that was a similar niche business but said they folded a few years ago.

As far as Metzler’s success in the current economy, he says just because he’s made it doesn’t mean he isn’t “having a hard time like everybody else.”

However, he said Metzler’s offers a valuable service and they try to do things differently than their competitors with classes, concerts and a recently launched e-newsletter. Also, they do not choose to have customers make appointments as many violin shops do, although they have the option of doing so.

Metzler said he guessed between 8 and 40 customers come into his shop on a weekly basis. A typical sale for a customer can be a $50 to $100 transaction just on sheet music, as Metzler said the majority of his customers come in with a specific need.

Left Coast Wine Bar & Art Gallery

From the street, the art side of Left Coast Wine Bar & Art Gallery may not be obvious. However, up the staircase connected to the wine bar is an art gallery where events are held showcasing art and with live musicians.

Co-Owner Tom Fulton, 60, owns the restaurant along with his wife Rachelle Ryan. The Left Coast wine bar opened 3 years ago, near the opening of the Americana.

According to Fulton, the proximity to the Americana helps their small businesses by driving in local foot traffic.

Because of all of the events Fulton estimated that 500 people to 600 people come through his wine shop weekly, and 60 people to 80 people daily.

“We think we’re unique with a European flair. We don’t have TVs blaring and [we have] good entertainment. We haven’t seen anything like it. It’s pretty unique.”

In the current economy, Fulton says being a niche business has helped his shop.

“We have a good value and entertainment services. We have a small-sized shop and we control our costs.”

The cheapest item Fulton offers is $6.50 for a glass of wine up to $1,000 for a bottle of wine. However, he says the majority of the people buy mid-range wine. Also sold at the shop are cheese, pizzas and tapas. Finally, the art on the walls is often sold at the shop.

Although Fulton says some people from outside the area come to the business, their main customer base is made up of L.A. locals many who are repeat customers and come to their wine shop “every night.”

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VICA Rebukes City Council on Budget

The Valley Industry & Commerce Association expressed outrage at the Los Angeles City Council for failing to solve the city’s budget shortfall after it was announced the council had voted down a measure that would have handed about 1,000 employees pink slips.

“Instead of making the tough leadership decisions necessary, the council delayed job cuts that added $4 million to the budget gap,” said the business-advocacy group, based in Sherman Oaks.

“The city must follow the example set by the private sector, which is to first cut costs in a meaningful way during times of Economic crisis,” said VICA Chair Daymond Rice. “The business success stories that will emerge from this recession will be focused on those companies that first cut costs, then identified and executed opportunities for innovation and efficiency. Municipal government is no different. Today, Los Angeles remains at step one.”

VICA’s leaders say they want the city to be run more like a business, especially as the economy recovers from the recession.

(Businesses) know that when revenues are down, expenses must be cut, the statement said.

“The fact that there seems to be a complete lack of understanding as to the seriousness of this problem is extremely concerning,” said VICA President Stuart Waldman. “The idea that raising taxes is even a consideration in this economy shows just how out of touch some councilmembers are with the real world.”

A coalition of business groups that includes VICA, Biz Fed, Central City Association and the Los Angeles Area Chamber of Commerce recently submitted a proposal to city leaders to help manage the pension crisis.

The eight recommendations, which the groups say have been “basically ignored,” are: increasing employee contribution rates to reflect market conditions; raising eligible retirement age to Social Security age; reevaluating post-retirement health care benefits; lowering the annual service credit for each year worked and cap total pension benefits; servicing credit purchase based on actuarial value; eliminating so-called pension spiking; raising the number of mayoral-appointed pension board members; consolidating the three agencies administering Los Angeles pension funds

“If not addressed the city’s current pension structure will drive L.A. to bankruptcy.” Waldman said. “This is not a time for Pollyanna lawmakers to worry about making every squeaky wheel happy; this is a time for strong leaders to make serious and painful cuts to keep the city solvent.”

Thom Senzee

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AROUND THE VALLEYS

The college recently changed its name to the University of Antelope Valley after receiving approval from the U.S. Department of Education and the Accrediting Council for Independent Colleges and Schools to offer Associates, Bachelors and Masters degrees.

Marco Johnson started the school in 1997 as a response to learning that residents he knew did not have basic first aid skills. The school later added non-medical classes to its curriculum.

The business outlook conference takes place at the Antelope Valley Fairgrounds.

Palmdale

Booths: Businesses and not-for-profit organizations can submit applications for vendor space at the Thursday Night on the Square events in July and August.

The summer gatherings give exposure to businesses, artisans, commercial vendors and organizations to the attendees.

“The majority of the vendors, as well as the city and its residents have certainly benefited from this,” Palmdale’s Recreation Supervisor Annie Pagliaro said.

Eight Thursday Night on the Square events are scheduled between July 1 and Aug. 19 at Poncitlán Square.

Applications and agreements are available online at http://www.cityofpalmdale.org/departments/parks/tnots/.

Inn: The Embassy Suites hotel opened in Palmdale on Feb. 1.

The hotel includes king and double suites, a fitness center and pool, and the Fourteen Restaurant and Lounge.

Embassy Suites Palmdale is managed by Sun Development & Management Company of Indianapolis and is the first of three Embassy Suites hotels to open in 2010.

“We are proud to bring the outstanding Embassy Suites hospitality to Palmdale and look forward to continuing our expansion of the brand in 2010 and beyond,” said Chris Mayer, president for Sun Development & Management Corp. “With such a strong base of loyal consumers and brand recognition, we are confident that the Embassy Suites brand will thrive in Palmdale.”

CONEJO VALLEY

Agoura Hills

Catch: Broadman Fine Arts is offering limited edition prints of New Orleans Saints quarterback Drew Brees with Warner Bros. Looney Tunes characters commemorating Brees passing the 5,000-yard passing threshold.

Sale of the prints titled “Catch Dat Brees” benefit the Brees Dream Foundation.

The idea for the print came from Vicki Austin, owner of the Broadman gallery.

Brees is the first NFL player to be featured in a Warner Bros. sports limited edition print. He is depicted completing a pass to Bugs Bunny while Daffy Duck has just finished turning the 50-yard line into the “5000” yard line.

The Brees Dream Foundation provides care, education and opportunities for children.

Thousand Oaks

Eats: Stonefire Grill will open its new location in the Evergreen Plaza in Thousand Oaks in April.

The restaurant chain specializes in such favorites as mesquite grilled tri-tip, barbecue and lemon-garlic chicken, baby-back ribs.

Architectural firm Heathcote & Associates is transforming the site formerly occupied by Marie Callender’s. The West End Design Group of Encino will complete the indoor and patio design touches.

“We’re delighted to launch our newest restaurant in Thousand Oaks, a location that holds a special place in my heart as I live there,” said Mary Harrigan, co-founder of Stonefire Grill with her sister Maureen. “We’re hoping that residents and visitors to the area welcome us as warmly as they have in the other communities we serve.”

SANTA CLARITA VALLEY

Santa Clarita

Progress: The Redevelopment Agency of the City of Santa Clarita awarded grants of $5,000 each to 20 small businesses in the Newhall Redevelopment Project Area.

The grants are part of a larger plan created by the city to provide financial assistance to small business owners to make improvements, and encourage growth and sustainability in the redevelopment project area.

Businesses applying for the grants received assistance from the Small Business Development Center.

Assist: The Small Business Development Center at College of the Canyons will expand its business consulting and training services in the Antelope Valley with the help of a $10,000 donation form Wells Fargo bank.

The services will help grow the local economy by assisting entrepreneurs and small business owners.

The center also received $10,000 in matching federal funds for the program providing business start-up and expansion assistance; training entrepreneurs about forming a business plan; guidance on how to obtain financing; and advice about increasing sales for existing businesses.

The SBDC will provide the training advisors and consultants with Wells Fargo and the Antelope Valley Board of Trade offering meeting space.

“This partnership – which brings together the resources of the nation’s number one small business lender and Los Angeles county’s top-performing team of SBDC business advisors – will help hundreds of Antelope Valley’s small business owners receive the assistance they need to meet the challenge’s of today’s business environment,” said center Director Steve Tannehill.

Glendale

Donations: Miss America Caressa Cameron will serve as spokesperson for IHOP’s National Pancake Day.

The restaurant chain will give away millions of pancakes on Feb. 23 and asks in return for diners to donate to Children’s Miracle Network and other local charities.

IHOP is seeking to raise $1.75 million for children’s hospital programs on National Pancake Day. It is part of an overall effort to raise $5 million over five years.

“Five million dollars over five years is an impressive fundraising feat, and I look forward to working closely with IHOP and Children’s Miracle Network to turn this goal into a reality,” Cameron said.

Calabasas

Leadership: City leader James Bozajian receives the Bill Van Gieson “Spirit of Calabasas” Award from the Calabasas Chamber of Commerce on Feb. 25.

Bozajian is being honored for his devotion to the people of Calabasas, knowledge of the needs and interests of the many constituent groups in the region and his engagement in the operations of the city, according to chamber President and CEO Carol Washburn.

Bozajian is a three-term city council member and two-time mayor.

As an elected official, Bozajian helped create the Historic Preservation Ordinance and Commission; and supported an open space and public lands preservation ordinance.

Burbank

School: C. Edward Spiegel received the Woodbury University School of Business Alumnus of the Year Award on Feb.11.

Spiegel is a 1960 Woodbury graduate who has been a practicing CPA for more than 25 years. He was a partner in the firm of Levin, Cooper, Spiegel & Co. and currently services as owner and president of entertainment industry payroll and software provider Cast & Crew entertainment Services.

“Ed’s professional and personal accomplishments demonstrate the spirit of Woodbury’s mission and set an example for others,” said Woodbury President Kenneth R. Nielsen.

The alumnus award recognizes an individual who has set a high standard in their chosen profession.

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