There is a palpable air of excitement in downtown Bellingham that is strong enough to give you goose bumps. New mixed-use buildings are drawing residents and new businesses are moving in to win their trade. Railroad Avenue, once a hangout for various unsavory types, has made huge strides in cleaning up its act.
Perhaps the most telling factor in the downtown renaissance is that the glitter has seemingly worn off mall culture. Shopping malls are no longer a novelty. Often, customers have to walk farther to get to a store in the mall than they would downtown. Baby boomers are remembering the excitement of downtown prior to the coming of the malls and are returning in droves.
Cultural opportunities are exploding with the addition of the new smaller performance venue at the Mount Baker Theatre and Ryan Stiles’ UpFront Theatre on Bay Street. Plans for the new Depot Market Square have generated a fair amount of controversy, but downtown merchants are solidly behind the project.
Some trepidation still exists over future plans for the waterfront. However, the Waterfront Futures Group’s final vision document released in August puts a strong emphasis on integrating any new development into the downtown core. Ask any downtown merchant if they would relocate to the ‘burbs and you’ll get an emphatic ‘No,’ frequently strengthened with a reference to the nether regions up front.
Eleise Kerman, owner of Pacific Dance Company, is a downtown true believer.
“I started ballet classes at the Morca Academy in 1975,” Kerman said. “When I was growing up here, downtown was the place to hang out.”
After graduation from high school, Kerman worked as a teaching assistant at Morca.
“I really got the bug,” she said.
Kerman majored in dance at the University of Oregon and trained as a teacher with the Royal Calgary Ballet.
“Mrs. Morca passed away in 1995 and they were going to close the school the next year,” she said. “A large group of families got together and helped me start Pacific Dance Company in 1997. It was kind of like those old Andy Hardy and Judy Garland movies where someone says, ‘Let’s put on a show!’ I had no business training, so I learned as I went along.”
A dance school has to be a destination business.
“It’s hard to attract students,” Kerman said. “You have to keep up with what’s popular, but still maintain classical standards. You try to do what you love and still have other people respond to it. This was a good way to keep Morca going and have something here to help kids learn dancing.”
Early marketing efforts consisted mostly of flyers.
“We got a little more balanced over the years,” Kerman said. “Word of mouth is vital. You have to have good teachers to draw in students.”
Pacific Dance Company now has eight employees.
“It’s very difficult to get good dance teachers,” Kerman said. “I was very lucky to get the staff I have. They have helped me bring the school to a new level. I try to hire teachers who dance professionally, not just advanced students. The university is an advantage for us. Some of our teachers are graduates.”
Given the difficulty of finding good teachers, keeping them is important.
“You have to be honest and pay them fairly,” Kerman said. “You have to respect what they do. I try to stay out of their classrooms and we have regular staff meetings. Communication is the key.”
Downtown’s central location has contributed to Kerman’s success.
“Everybody knows how to get here,” she said. “It’s close to the Mount Baker Theatre, which makes our performances easier. I like the slower pace of downtown. You can walk around without feeling bombarded by hard sell.”
Downtown Bellingham is making definite progress.
“I remember watching all the big stores go to the mall, but people still came down here,” Kerman said. “The arts destinations pull people in. There are interesting projects in the works. We have to change the way people think about downtown and that’s a lot tougher than just advertising.”
Part of the solution is increasing downtown’s appeal to young people.
“Teenagers need places to hang out in between classes,” Kerman said.
She expects her business to get bigger and better.
“I’d like to expand the existing studio,” Kerman said. “We could use more space to accommodate the huge growth in student population in the past two years.”
Kerman remembers when the area was a ghost town and is encouraged by the changes. One thing that hasn’t changed, except for the better, is Pacific Dance Studio’s annual production of The Nutcracker, scheduled for December 10 and 11 at the MBT.
Cellophane Square has been a downtown fixture for many years and the new ownership is planning extensive upgrades. Scott Kuzma bought the record, tape and CD business in 2002. He’s the owner of Everyday Music, with several stores in Seattle and Portland.
“You have to find a niche and ours is used product,” Kuzma said. “Once we built a strong base, we branched out a bit so that now our mix is about 50/50 new and used.”
It’s definitely not a mall store.
“We don’t cater to that clientele,” Kuzma said. “Our customers are mostly college age people and older adults to whom music is very important. We offer a lot more jazz, blues, folk and classical than the big chains. True audiophiles generally come to us.”
That puts certain demands on staffing.
“We have to hire people who are seriously into music,” Kuzma said. “They have to be able to help customers with the latest releases.”
The store has eight employees.
“It’s difficult to hire good people,” Kuzma said. “You have to have a certain hip factor for the college kids. We put a lot of effort into training and giving them incentives to stay with us. We also offer good benefits and profit sharing. When it was just one store, I could handle it all myself. Now, it’s a challenge to keep emphasizing service.”
He’s still trying to get a handle on Bellingham.
“We’re more successful in downtown areas,” Kuzma said. “A lot of our customers have double incomes and no kids. People in the ‘burbs don’t have as many discretionary dollars to spend. For example, our store in Beaverton is not as successful as downtown Portland.”
Kuzma sees a lot of potential in downtown Bellingham.
“People come down here to do lots of things,” he said. “It’s not just a daytime place. I live in downtown Portland and love the area. I see things happening here in Bellingham. Business is picking up.”
Cellophane Square’s lease is coming up for renewal soon and Kuzma will make a decision whether to convert the store to the Everyday Music brand.
“That will mean a different look and fixtures,” he said. “If we can’t do it here, I’ll look elsewhere downtown. If business justifies going forward, I’ll make a commitment sometime after the holiday season. I’m looking for the opportunity to expand. Bigger stores mean a bigger product spread.”
Everyday Music stores in Seattle and Portland run 11,000 to 12,000 square feet.
“We have a war chest for expansion and good cash flow,” Kuzma said. “If opportunities come up, we will expand. But we will always have broader product lines than the mall stores.”
One of Kuzma’s challenges has been to fight the slacker image of independent record store owners.
“I’ve been doing this for 25 years now,” he said. “This is a business and you have to treat it professionally. I’ve learned a lot about what not to do. The record business has been through some tough times, but I’m more optimistic than I was two years ago. Small independent companies can adjust quickly, make the changes needed to survive. There will always be a niche for us.”
Harley-Davidson has become an object lesson in how to turn a niche market into a mainstream success. There’s been a dealer selling the legendary motorcycles in Bellingham since the 1920s. L. J. and Robin Agnew are the current owners of the State Street dealership and Barbie Jackson is the General Manager.
“I started by doing displays for this store and have been general manager for six years now,” Jackson said. “It’s hard work, but it’s the most fun I’ve ever had. People who come in this store are looking for fun and many of them become friends.”
Harley owners quickly become part of a vast subculture.
“People who are new to motorcycles think they will only ride on sunny weekends,” Jackson said. “Pretty soon, they’re using it for work and looking for an excuse to ride to the corner store for milk. They end up with Harley-Davidson tattoos. Once they start riding, they connect with a whole new group of friends.”
Ask any Harley rider why this happens and you’ll get the same reply: “If I have to explain, you wouldn’t understand.” According to Jackson, it’s all about freedom and fun.
“It’s been an evolutionary thing, going from the outlaw image to judges and doctors riding bikes,” she said.
Harley-Davidsons were in such demand that it was almost impossible to get one for a while. The company has ramped up production in response.
“People tend to think they’re more expensive than they are,” Jackson said. “Most models range from $7,000 to $21,000 and they retain an incredible resale value. It’s an investment you can enjoy.”
Reliability has increased dramatically from the days of Zen and the Art of Motorcycle Maintenance.
“There was a grandmother who took her grandson to Alaska on a Harley,” Jackson said. “It’s a great way for parents and grandparents to bond with kids. It’s not like a trip in a car. You can really see what’s all around you. You’re in touch with the elements.”
Jackson doesn’t mind if imports are making a few inroads.
“The important thing is that people are riding,” she said.
Twenty-four people work at the dealership and at the mall store.
“Lots of people want to work here,” Jackson said. “We have far more applicants than we have jobs available. There is very low turnover. We offer full benefits and retirement. L. J. and Robin treat people the way they want to be treated. They’re always there for us.”
Advances in motorcycle clothing have reduced the effects of bad weather on the business.
“We actually sell a lot of bikes over the phone,” Jackson said. “We have open houses and customer appreciation events and there’s a huge amount of ancillary merchandise.”
Harley-Davidson of Bellingham is happy to be downtown.
“We like the old time brick look of this building,” Jackson said. “It makes us look like we belong downtown. We like helping our customers patronize downtown businesses.”
The business is very involved in the community.
“We do a ton of auction donations and advertise on the high school sports calendars,” Jackson said. “It helps get our name out there. L. J. and Robin aren’t in the business to get rich, but to make a living and provide a good place to work. Don’t be intimidated by the Harley-Davidson store. It’s not a Hell’s Angels hangout any more.”
One of the most enjoyable things about downtown is that it’s always a bit of a treasure hunt. There are always intriguing new storefront businesses to investigate. Du Jour Bistro and The Vines have been around for two years and combine a restaurant and wine shop. Becki Lawson and her husband Michael Petersen own the Cornwall Avenue establishment.
“We both have a background in the restaurant industry,” Lawson said. “I managed Boundary Bay Brewery for a while. We had done everything in the industry except own a restaurant.”
She describes the food as Mediterranean with French influence.
“We called it Du Jour because the menu changes by the day,” Lawson said. “When we run out of something, we change the menu. That way, everything is absolutely fresh. I’ve wanted to own a restaurant since I was a kid.”
Lawson took pre-med courses in college, but found that her heart lay in the hospitality industry.
“Friends loaned us the money to get started because the banks told us 40 years experience in the industry wasn’t enough,” she said. “We talked with the SBDC about ethnic minority grants, but the paperwork was just too daunting.”
There are four people on the staff.
“It’s difficult to hire people who fit our niche,” Lawson said. “They have to be wait staff and be knowledgeable about wines. Basically, we had to hire four managers. We pay our employees better than most places and provide a great atmosphere to work in. We use gifts as incentives and treat them like a vital part of the business. Three of our employees have been with us since the beginning.”
Too many people think the restaurant business is easy.
“You have Mom’s great meat loaf recipe and your friends say you should open a restaurant,” Lawson said. “It would be a cool place for your friends to hang out. It’s a lot tougher than that and a lot of restaurants fail. That makes it difficult for people with experience to get financing. I couldn’t open an auto repair shop just because I like cars.”
They wanted to be downtown from the beginning.
“Downtown is really getting healthy again,” Lawson said. “A lot of people complain about parking, but it’s really not an issue. The increased police presence has helped a lot. It’s great to see the cultural center coming along and Depot Market is exciting.”
The Vines brings in people who haven’t been downtown in ages.
“There are lots of new businesses, most locally owned,” Lawson said. “People need to get down here and check it out. There’s lots of things they don’t know about. Downtown is the heart of Bellingham.”
John D’Onofrio fled Silicon Valley in 1989 for the friendlier environment of Bellingham. He sold off his interest in a business there and started Northwest Computer Supplies here.
“This county is the best place in the U. S. for taking advantage of the free trade agreements,” D’Onofrio said. “Of course, we’ve been too busy serving the local market to look into the opportunities in B. C.”
NWCS started as the proverbial garage operation.
“We moved to Railroad Avenue in 1992 and this location in 1995,” D’Onofrio said. “It’s tough for an independent to compete. People think there are only a couple of solutions for computers. They think they will pay a premium for local service. Our products and services are not only just as good as the others, but better.”
D’Onofrio has the credentials to back up that claim.
“We’re an Intel Premium Provider, one of only 248 in the country,” he said. “Microsoft recognized us as the fastest growing computer provider in Washington and invited us to sit on the OEM System Builder Partner Provider Council. We’ve won a readers’ poll as the best computer store in Whatcom County four years in a row and were the first winner of the best computer service store award.”
While many are familiar with the retail shop on Cornwall, most people don’t know that NWCS is a major provider of computers and equipment to schools and government offices as far east as the Mississippi.
“That means we have to build to a higher standard than for home computers,” D’Onofrio said. “We’re not really looking to compete in the home user market. Retail is less than four percent of our revenue. We’re the largest supplier to Western Washington University because we deliver optimal value.”
The company spent 10 years as a distributor before starting to build computers.
“We already had the distribution systems in place,” D’Onofrio said. “That and our buying power help us maintain competitive pricing.”
There are now 41 employees at NWCS.
“The hardest thing about doing business is finding good people and I’ve got 41 good ones,” D’Onofrio said. “It’s tough to find people who combine technical ability with basic social skills. It’s more than just solving tech problems. You have to the larger solution, the one that is the best fit for the customer.”
D’Onofrio has a background in psychology, not technology.
“You keep good people by finding out what they want and need to be successful,” he said. “Find out their personal goals and help them pursue those aims. Get people engaged, challenged, passionate about what they do.”
The business reflects D’Onofrio’s belief system.
“We do not seek a transactional model of doing business, but rather a relationship based experience,” he said. “We believe that success can only be defined over time and is a direct result of the quality of our relationships.”
That philosophy has resulted in 98 of the top 100 businesses in Whatcom County doing business with NWCS.
“I love being downtown,” D’Onofrio said. “I come from the East Coast, so I saw what happened to downtowns when the malls moved in. I’m fortunate to be in a position to help keep downtown Bellingham going.”
One of the ways he’s helping is by painting a huge mural of playful orcas on the side of his building. He hopes it will become a landmark when people give directions in downtown Bellingham.
If you bear right at the orca mural and then take a left on Magnolia, you’ll soon find an eclectic shop called Downtown Emporium. Betty Theiler opened the business about three years ago.
“I’ve been in importing for 15 years and had a store in Petersburg, Alaska,” she said. “So the basic concept was already in place when I sold that store and moved here. There was an opportunity to expand here and I was tired of the rain.”
She describes it as a clothing boutique and gift emporium.
“We have imports from Bali, Nepal, Thailand, Vietnam, India, Africa and some Alaskan items,” Theiler said.
She described the development of the business as an organic process.
“I grew up in my Dad’s surplus store,” Theiler said. “Being a merchant is in my blood.”
Downtown Emporium has three employees, one of whom is Theiler’s daughter.
“I have really good employees and keep them by giving them incentives and raises and being flexible with their hours,” she said. “I also let them know what’s expected of them.”
Business is always a learning process.
“We’re generally busier in the summer and during the holiday season,” Theiler said. “I’ve been trying to even it out a bit more – trying to figure what customers want and what makes them buy. I’ve been working on determining who our customers are and how to get them in.”
Newspaper ads and an extensive mailing list help, but the big display window is a constant draw.
“Walk-by traffic is important for us,” Theiler said. “There’s almost always someone looking in the window.”
She believes downtown needs to be more cohesive, with a merchants association in addition to the Downtown Renaissance Network.
“The signs and benches are good, but free parking would help even more,” Theiler said. “I don’t understand why Fairhaven has free parking and we don’t.”
Downtown Emporium tries to be competitive with much larger chains.
“I look for deals,” Theiler said. “That comes from Dad being in the surplus business.”
Fashionable downtown dogs now have their own store with last year’s opening of Downtown Hound on Cornwall. Celeste Patten is the owner.
“I adopted a dog from the Humane Society and couldn’t find some things I wanted,” she said. “I saw the opportunity for a store and did some research. Mom started baking dog treats.”
Patten has a background in both office work and retail.
“We financed the store on our own and did a business plan for our own use,” Patten said. “Mom is a graduate of the business management program at Skagit Valley College.”
The downtown location was important.
“We liked the space and the environment,” Patten said. “We’re a gift store, not a supply store, so we don’t sell dog food. We have gifts for pets and for people with pets, such things as designer collars, welcome mats and doggles.”
Those are, naturally enough, goggles for dogs.
“I researched companies that had stuff I liked,” Patten said. “I went to the Seattle Gift Center and trade shows looking for merchandise.”
She found such things as Mutt Hutts, small tents for when you take Fido camping and don’t want to sleep with a half-drowned hound.
“We have dog jackets from Vancouver, BC, that are both fashionable and keep dogs comfortable in cold weather,” Patten said. “There’s lots of stuff for the active, outdoor dog and we have things for cats, as well.”
If you want a portrait of Rover, Downtown Hound can put you in touch with artists who specialize in such doggerel.
“It’s also a resource for dog owners in the area,” Patten said. “We have information on off-leash areas. There’s also dog jewelry, dresses and hair clips.”
She has forged connections with Paws With A Cause, the Whatcom Humane Society and the Alternative Humane Society.
“The number one question when people come here is, ‘Do you sell puppies?’” Patten said. “We do not and puppies should never be sold in retail stores. It’s not a good environment for raising puppies. Rescued dogs from the Humane Societies need to be adopted first.”
Downtown Hound doesn’t compete much with the big box pet stores.
“We have some merchandise overlaps, but this is more of a niche store,” Patten said. “I like being downtown. The neighbors are very supportive and my aunt owns Sew and Sew. People have forgotten about downtown and we have to overcome that. There are so many great new stores opening. Come down and check it out.”
Downtown Bellingham offers a diversity of businesses unmatched anywhere. I go there frequently to interview business owners and can personally vouch for the fact that parking is a non-issue. I never have to walk more than a block. And did you know that the downtown parking meters accept Canadian coins? What else can you do with a Canadian quarter?