Area businesses forge ahead despite economic challenges

EVAN WILLIAMS/FLORIDA WEEKLY Andy and Chuck Bebber of Brothers Lighting and Fan Gallery in their newly opened showroom on Colonial Boulevard. Merchants in Lee County are following through with plans they made before the economic downturn imposed a credit crunch and dampened consumer confidence.

"The discouragement has come from every level," said Chuck Bebber, owner of Brothers Lighting and Fan Gallery. "But we only deal with the things we can control."

The Fort Myers business reopened last week on Colonial Boulevard, in a space nearly four times the size of its original location. Mr. Bebber, 46, and his brother, Andy Bebber, 43, bought the 18-year-old operation from its original Miami-based owners in 1997. They secured financing to build the new store in November 2006, before the credit crunch would have stopped them from borrowing the money.

Instead of financial woes, the brothers said, their biggest hurdle in reopening was meeting building codes and permits in the new 16,000-square-foot, two-story building.

COURTESY PHOTO Snook Bight Yacht Club & Marina. "We had a vision and the support of each other and we wanted to see this through," Chuck Bebber said.

They've prepared for consumers who might be short on funds with a diverse inventory of ceiling fans, chandeliers, stand-alone lamps and decorative lighting in all price ranges from companies as traditional as Hunter and as contemporary as lighting designers Et2.

The Bebbers hope their bigger, grander store will not scare off people looking for bargains.

"We decided to go with two stories and have an atrium, so when people came in, the first impression is really terrific," Chuck Bebber said. "The response has been wonderful, but our challenge is to not let the large, beautiful building prevent people from coming in to purchase less expensive fixtures as well."

Brothers is one of many relatively small stores growing in Lee County. Local banks, restaurants and owneroperated franchises — more so than national companies and corporations — are opening or expanding.

Southwest Capital Bank opened a new branch on Pine Island this year, adding to its downtown and South Fort Myers locations. "The banks and small businesses will drive us out of the economic downturn," Southwest President Bruce Shultz said.

Because financing is tougher to get, however, Five Guys Burgers and Fries, a national franchise with three locations in Lee County, has grown at a slower pace than originally planned. The most recent Five Guys opened at the Forum in South Fort Myers this November.

"The lending situation poses challenges," said Lindsey Schmoyer, a broker associate for LandQwest who negotiated the leases for Five Guys in Fort Myers and Cape Coral. "(Banks) require 50 percent down versus 20 percent. Typically, we'd put 20 percent down and do two stores at once," but instead, Five Guys opened one store per year. "It definitely slowed us down."

Bank president Mr. Shultz said businesses must demonstrate a greater measure of credibility or capital now than before the downturn. "No doubt we're looking at things with some increased scrutiny. You'll see very few businesses that can say they've had an outstanding last few years. (However), we're still lending money, putting deals together."

He added, "It's all about local people doing business with local businesses. We are absolutely committed to helping our businesses through these difficult times."

Doug Olson, a real-estate broker and leasing specialist at LandQwest, said local stores and franchisees have the opportunity to take back prime retail space from shrinking national corporations.

"It used to be, every end-cap in every shopping center in town had a Blockbuster," Mr. Olson said. "Starbucks has been the darling recently. The last bite of the apple goes to the local business. In this climate, there's prime real estate available to the local business person.

"I think very few (businesses) recognize the opportunity, and fewer have the resources to capitalize on it. That's why the rich get richer in times like this," he adds. "These are the times when wealth is really created… (by) people positioning themselves for the next boom."

Joe Yerkes could be one of those in a lucrative position when the economy recovers. With two other investors, he bought property on the back bay on Fort Myers Beach in 2004, tore down an aging marina and built a new one. Snook Bight Yacht Club & Marina has a 201-slip dry storage building, clubhouses for the public and private members, 54 docks for boats up to 50 feet and a full-service department for boats. A 180-seat bistro will also open early in the New Year.

The greatest challenge wasn't financing, because Mr. Yerkes and his partners had enough capital to build the marina without borrowing money. They bought the property for $6 million in 2004 and invested at least $16 million more, he said. "We don't have any bank debt because we did it all out of our own cash."

Because so many construction workers had left town, however, subcontractors had fewer crews and work was delayed. "In the old days, the paving company would have had 10 crews of pavers out there," Mr. Yerkes said. "Suddenly he's trying to juggle this with one crew. We found that in all areas — with plumbing, electrical, paving, getting lumber and concrete. It just rippled through this whole area of construction."

Mr. Yerkes doesn't think the economy will recover anytime soon. "There's a collective belief we're in for two or three years of pretty tough times," he said. "We're not going to get out of it until we get out of this foreclosure mess and the banks loosen up on the money."