Hollister
– Downtown Hollister is growing, although local shoppers could
be excused for thinking otherwise.
Hollister – Downtown Hollister is growing, although local shoppers could be excused for thinking otherwise.

In 2006, 19 businesses opened and nine closed downtown, according to the Hollister Downtown Association. All told, the shifts made for a net increase of more than 70 jobs.

Most of those jobs are in real estate or finance – Nino Homes and Nino Real Estate, for example, brought 21 jobs downtown. Twelve real estate, mortgage or finance businesses opened downtown, compared to two new retailers and two new restaurants. And one of the new restaurants was It’s A Deli, which is basically Roxy’s Li’l Cafe under a new name and new ownership.

Mary Breen, district manager for Citifinancial, said the business moved from the Adams Square Building to downtown Hollister in December, and the higher visibility has already led to an increase in business.

“If people want a loan, they can just look over and say, ‘Hey, there they are,'” Breen said.

Don Alvarez, owner of The Elegant Touch, said the additional jobs have been a boon to his restaurant. In the four years since he purchased the restaurant, Alvarez said the average rate of growth has been about 10 percent. In 2006, however, his business grew by 25 or 30 percent.

“It was outstanding,” Alvarez said.

Alvarez thinks some of his success is due to positive word of mouth – he noted that he’s dramatically expanded the menu from that offered by the previous owners – but he’s also noticed that most of the business cards dropped in the free-lunch and free-cheesecake jars have come from real estate companies.

Alvarez plans to expand to the building next door – which would increase the size of the restaurant from 1,500 to 3,800 square feet – but he said it’s too early to know when construction will start, much less when the expansion will open.

Jerry Muenzer, who chairs the downtown association’s economic restructuring committee, believes that increasing foot traffic is key to revitalizing the area, and he said that he’s definitely seeing more people downtown, especially at lunchtime.

However, the real estate and financial businesses haven’t benefited everyone. Muenzer, for example, said Muenzer’s Cyclery and Sports Center – which has been in his family for generations – caters mainly to children, not real estate agents.

“The crossover right now is not real significant,” Muenzer said.

Some business owners have also pointed out that real estate and finance companies don’t do much to attract shoppers. Late-afternoon and evening pedestrians remain a rare sight downtown, and on Friday afternoon, for example, the only people on San Benito Street were either pro-military demonstrators or ducked quickly into Johnny’s Bar and Grill. And Ignacio Velazquez, owner of The Vault restaurant, said business continues to be “pretty much flat.”

However, Muenzer sees signs of hope on the horizon – for example, the opening of the old Elk’s Lodge at Fifth and San Benito streets, which Velazquez owns. Velazquez said work will be finished soon, and that he’s “upgraded everything” inside. The building will house a number of offices, and Citifinancial has already moved in downstairs.

Will Sutton, senior vice president of San Benito Bank, expressed a similarly optimistic view. He said things should improve as new developments open, as the Highway 25 bypass is built and when the city’s moratorium on new sewer hook-ups – which has brought new development and population growth to a virtual standstill, and which the city hopes to end in late 2008 – is lifted.

“We’re turning the corner,” Sutton said. “Things are getting better.”

Anthony Ha covers local government for the Free Lance. Reach him at 831-637-5566 ext. 330 or [email protected].

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A staff member wrote, edited or posted this article, which may include information provided by one or more third parties.

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