Five area businesses, including 4 in Elyria, close doors as economic slump continues

ELYRIA – Four Elyria businesses – Krazy Mac`s, Blockbuster, Pulse Cafe and World Leather Outlet have closed, along with Carpet & Tile Liquidators in Sheffield.

As if that weren`t bad enough, four more downtown properties owned by real estate developer Jay G. Tokar go on the auction block Wednesday, creating more uncertainty.

Phone numbers for several of the shuttered businesses and their owners were disconnected or rang without answer.

But signs on the doors of the empty businesses told the story. Krazy Mac`s, which engaged in a long battle with the city of Elyria over a sign when it opened last year, will relocate to Lakewood in June, according to a notice on the door of the restaurant at Broad and Cedar streets.

Don Brackenhoff, the city`s economic development director, said he lunched several weeks ago at Krazy Mac`s, and owner Ron Heinbaugh didn`t mention he was contemplating a move. Brackenhoff said the closings of Blockbuster on Cleveland Street and Carpet & Tile Liquidators on Abbe Road probably relate to difficulties within their chains.

A sign on the Blockbuster store on Cleveland Street said another Blockbuster store remains open in North Olmsted.

Eight of the 14 Carpet & Tile Liquidators, including the Sheffield store, have closed while the six stores that remain open are selling off flooring stock, according to an employee of the Strongsville store.

World Leather Outlet, on Cleveland Street, featured clothing and other leather goods.

As for Pulse Cafe, another eatery, Brackenhoff said owner David Andras had a one-year lease for his Middle Avenue restaurant, which is in one of the Tokar buildings to be auctioned next week.

A sheriff`s sale is set for 10 a.m. Wednesday for four buildings owned by JGT Enterprises Inc., the company led by Tokar, once referred to as king of Elyria`s downtown. The JGT Annex at 374 Broad St. includes two law firms, offices for a security company, the Lorain County Alcohol and Drug Services and headquarters of the Ohio Elks. It is appraised at $360,000, a reduction of $90,000 from its appraised value of $450,000 in October.

Also to be auctioned Wednesday are Tokar`s buildings at 140, 144, 146 and 148 Middle Ave., which are home to Minute Men Staffing, Pulse Cafe and several residential units. Lumped together for sale, the buildings are appraised for $270,000, a reduction of $105,000 from their appraised value in October.

Minimum bids start at two-thirds of the appraised value, or $240,000 for the JGT annex and $180,000 for the buildings on Middle Avenue, according to a representative of the sheriff`s civil office, which conducts the sales.

The high bidder must have 10 percent of the winning bid unless it is the plaintiff in the foreclosure. National City Bank sued JGT for foreclosure, and some $45,000 in delinquent taxes are owed on the buildings.

Last fall, several other Tokar buildings were foreclosed on and sold, and tenants were able to remain in those buildings, Elyria Mayor Bill Grace said.

Nationwide Insurance agent Brian Fehlan, who operates at 140 Middle Ave., says he isn`t worried about the abrupt change in ownership.

“I would think whoever bought it would like to have tenants,” he said.

Grace said he hopes prospective buyers will see value in the latest round of Tokar buildings to go on the auction block.

It`s sad when businesses close, but it`s happening all over the country, the mayor said.

The closings “are just additional results of this horrible economy we`re in,” Grace said. But several new businesses opened last week, he said.

Overall, Elyria Auditor Ted Pileski said city income tax revenue is down 10 percent this year.

“This is kind of unprecedented,” Pileski said, adding that the city hasn`t taken such a hit since the closing of GM`s Fisher Guide plant.

Meanwhile, the city will likely see $100,000 less in revenue-sharing from the state, Pileski said.

“I see no reason to believe it will change (in the near future) because of store closings and people being laid off,” he said.

Between November and April, a total of 6,734 people lost their jobs in the 44035 area code shared by Elyria and parts of Carlisle and Elyria townships, Pileski said. There were slightly fewer new jobless claims – 903 – in April versus the 1,102 in March, he said.

Still, the news for Elyria hasn`t been all bad. A new art school and studio opened recently at 381 Broad St. And in the coming weeks, at least four other small businesses plan to open, a women`s clothing boutique called Kelly`s Boutique at 10 Lake Ave., a shoe store called Steppin` Out! Footwear at 381 Broad St., a diner and coffeehouse called Peggy`s Place at 354 Broad St. and an information-technology consulting firm, Bafmin LLC, on Middle Avenue.

Contact Cindy Leise at 329-7245 or cleise@chroniclet.com.



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