Downtowns Deflated: Small businesses vs. COVID-19

Closures associated with COVID-19 are threatening the health of Long Island’s many downtowns and the livelihoods of those who own businesses and employ workers there.

The renaissance of once-dormant downtowns has become increasingly important to municipalities that want to attract millennials, young families and retirees to areas with a transportation hub, retail and entertainment options and a vibrant nightlife. Though shopkeepers and restaurateurs express an almost paradoxical optimism that their businesses will survive, the virus is challenging the ability of once-vibrant areas to spring back to life after the pandemic retreats and will make it harder for those languishing or in the midst of revitalization efforts to move forward.

“There is concern for what the new normal will be,” said Mike McElwee, a business owner who also heads the restaurant committee for the Chamber of Commerce of Greater Bay Shore. “We have amazing customers who have been very supportive, but this event may change the way everyone’s social habits are.”

Here is what business owners, local leaders and chamber officials told Newsday about their fight to survive COVID-19:

BAY SHORE: ‘Hoping there’s just three or four more weeks of this’

Bay Shore’s downtown is about 5 square miles and is centered on a mile-long stretch of Main Street. It is anchored by the Bay Shore Marina, Southside Hospital, the YMCA and the YMCA Boulton Center for the Performing Arts. The downtown has become known for its restaurants and bars but also includes businesses such as salons and gift shops. The area has gone through a renaissance in the past 20 years, after a period in which it was in decline, with many boarded-up storefronts and few businesses other than an X-rated movie theater. Today it’s considered one of the most vibrant downtowns on Long Island.

Islip Town Supervisor Angie Carpenter said the downtown was pretty close to its peak before to the pandemic and that some potential IDA transactions have been put on hold because of the coronavirus.

“Businesses have come in and out but there’s always seemed to be someone ready to take over,” she said.

Donna Periconi, president of the Chamber of Commerce of Greater Bay Shore, said the pandemic has especially challenged some businesses, such as restaurants that have not traditionally had a delivery or takeout model.

“The waterfront restaurants are hurting tremendously because they do catered parties too, and those have been canceled,” Periconi said.

“Workers understand. They’re not happy, but they understand,” owner Mike McElwee said. “We had to completely shift our operations to a complete delivery/takeout model, so that was probably the biggest challenge. We’re trying to still offer something unique so that we’re staying relevant and staying in business.”

He said his employees have struggled to get unemployment filed and that he hopes to get them back to work as soon as possible.

“We’re hoping there’s just three or four more weeks of this and then there will be some turnaround, but nothing is guaranteed so we’re just operating in the new normal for now,” said McElwee, who has applied for federal aid. “A lot of people can survive a month, can probably survive two months, but if it goes to three months that’s when I think it’s going to be a problem.”

Owner Drew Allt closed his doors to the public on March 16 and officially closed on March 21. He said he was able to pay all staff through March 21, but after that had to furlough everyone.

“Telling employees that we would be closed for an indefinite period of time was horrible,” Allt said. “I have many employees who have been with me since we opened in 2007. They aren’t just employees, they are my work family.”

While Allt is hoping for the best — he applied for federal aid — he is also worried about where his business is housed. 

“Rent is a huge concern for us,” he said. . . . “The COVID loan and grant programs need to be expanded beyond the PPP in order to help businesses like mine pay rent and utilities. To help us survive we need these programs expanded.”

LINDENHURST: ‘I’m petrified’

Lindenhurst’s downtown is centered on Wellwood and Hoffman avenues, but radiates out as far east as North Alleghany Avenue and as far west as 4th Street. It is anchored by the Long Island Rail Road station and Our Lady of Perpetual Help church and consists largely of restaurants, delis, bakeries and some small shops, such as a clothing boutique. The area had a high vacancy rate for many years, but while some storefronts remain empty, the village has had at least a half dozen businesses open within the past year.

The downtown was in the midst of turning a corner, bolstered by a 260-unit apartment building being constructed near the train station by East Setauket-based Tritec Real Estate. Work on that project is now on hold, said Mayor Mike Lavorata.

“So many people have been putting so much time into helping revitalize the downtown, so it’s a shame,” he said.

Rea Leunes opened C’est La Vie Boutique in 2018 and Pita Bowl Greek Cuisine restaurant in February. She did not have to lay off anyone from the clothing boutique because she is the sole employee. With Pita Bowl, Leunes was in the midst of hiring permanent staff when COVID-19 hit and was forced to hire just a few people, with her husband and son helping run the now delivery and takeout-only business. Leunes said she hopes to bring back the potential employees when her business returns to its normal hours.

“Because I’m still relatively new, a lot of people don’t know who I am,” she said of her boutique. “I’m trying to do what I can, but we just opened so I still have loans and bills to pay.”

Leunes said the pandemic has made the boutique reliant solely on online sales, which worries her.

“I’m petrified for the boutique,” she said. “Everyone needs to eat and they will eat. But as far as the clothing business, even when we’re able to reopen, are people going to be able to purchase and splurge on themselves, when they have their children and homes to take care of? I’m very worried about the boutique, but I want to return and I’m going to do everything I can to return.”

WESTBURY: ‘Some will not be able to reopen’

Westbury’s downtown is centered on a walkable ¾-mile stretch of Post Avenue as well as parts of Maple Avenue, and features about 130 storefronts, including restaurants, salons and businesses such as insurance agencies. There is also some office space and about 800 multifamily housing units, according to Mayor Peter Cavallaro. The area is roughly anchored to the south by the Long Island Rail Road station and to the north by performing arts venue The Space at Westbury.

Cavallaro said the downtown corridor was robust before the pandemic began.

“It was very vibrant with very few vacancies,” he said. The village in 2016 received a $10 million grant from the state for downtown revitalization. "The revitalization isn’t because the downtown is dead but because we want to take it to the next level, including building more housing by the LIRR station,” Cavallaro said.

The mayor said he is concerned that “the longer the shutdown continues, and our nonessential businesses remain closed, and our essential businesses — including restaurants — have much slower business than typical, [that] some will not be able to reopen.” 

Owner Patricia Barbosa said she had to close her salon on Post Avenue, which she opened three years ago, on March 20.

“It was an unpleasant situation,” she said. “However, all of the employees understood my reasoning. Although this has been a disheartening experience, my staff have all remained positive and supportive. These are truly uncertain times. However, I will at all costs try to avoid layoffs.”

She said her workers and others are struggling to make ends meet with no income coming in and that the more time goes by, the more she worries.

“I am concerned about how long this is going to go on and how long it will take to get my business back to where it was,” Barbosa said.

By Denise M. Bonilla

denise.bonilla@newsday.comdenisebonilla

Denise Bonilla has worked at Newsday since 2003 and covers the Town of Babylon, including the villages of Lindenhurst and Amityville.