Community: a unified body of individuals: such as a: the people with common interests living in a particular area
In everyday language, we often don’t give much thought to the word “community”. This past year I came to appreciate community and the impact a local business can make through an unlikely event: an estate sale. Like many families during the pandemic, my brother and I decided it was best to have an elderly parent move-in with me. That was the easy part; the hard part was deciding what to do with a lifetime of memorabilia and a unique assisted living property featuring a six bedroom home, a duplex, and a two-bedroom home in southeast Bakersfield. Do we sell or keep the entrepreneurial spirit alive in southeast Bakersfield?
Overcoming Hurdles to Local Business
In the Fall of 2020, the Coronavirus pandemic was in full tilt and the economy was uncertain. Furthermore, total crime in southeast Bakersfield hovered at reportedly 230% above the national average, violent crime at 275% and property crime just a tad better at 220% above average. However, we hesitated to put out the For Sale sign. Why? We would be one more small business and family leaving an underserved community.
In the more than 25 years of owning property in southeast Bakersfield, we never experienced theft, burglaries or violent crime. It wasn’t perfect by any means. There was gang violence in the 1990s and now frequent vandalism due to an uptick in homelessness. Despite these hurdles, everyday interactions, supportive neighbors and general friendliness made it a neighborhood like any other.
Believing in Local Business Value
At a Fall 2020 Coronavirus Safe Estate Sale, neighbors regaled each other with the history of the place. They spoke of pride-of-place due to having a Black-owned business in the neighborhood and hoped and prayed we wouldn’t sell. At the end of the three-day sale, we’d decided. We wouldn’t sell; we would renovate instead. Neighbors believed locally owned businesses added value to the community and we wanted to continue to nurture their fight to become a safe viable place for other local businesses.
Seeing Business Possibilities
We renovated the property to fulfill its intended use as a long-term assisted living care facility. Renovations included but were not limited to flooring, mouldings, paint, plumbing, windows, doors, air conditioning, and appliances.
Once the renovations were complete, we researched business possibilities for an R-2 zoned property. Kern County R-2 zoned properties, if you’re curious, are usually medium density residential properties such as a duplex and other medium-density, multifamily residential developments, and innovative housing including clustering and zero lot line developments of 6,000 square feet or less.
Doing Business Research
Finding the fair market value for an R-2 zoned property in southeast Bakersfield is no easy task. Real estate companies provided faulty appraising information based upon their assumptions about the neighborhood and failed to account for a lot with multiple units. There was also a general a lack of understanding and experience with properties suited for assisted living facilities.
In the end, we requested three separate appraisals to find one that seemed to be in the ballpark of accuracy; reached out to assisted living facility management and leasing experts to gain industry insights; and then networked within the community to find the right tenant. A minority-owned, long-term rehabilitative care business took tenancy in December of 2020. None of this would’ve happened if community residents hadn’t vocally embraced the small-business model and supported the mission of an assisted care facility. Residents educated us on the impact of local business on communities of color and we’re grateful and gratified from the experience.
Key Business & Community Take Aways
- Do NOT underestimate the prevalence of devaluation of property in historically minority neighborhoods.
- If a property appraisal leaves you scratching your head, ask for another appraisal or two or three.
- Reach out to experts in their field. In this case, it was appraisers, property developers, real estate brokers/agents, contractors, property managers, care facility owners, attorneys, accountants and yes, the neighbors. Your neighbors, friends and family are a treasure trove of knowledge.
- Be inquisitive, ask questions and network, network, network.
- Locally-owned small businesses are integral to a communities success, identity and upward mobility.
- If you think residents aren’t paying attention to local business and aren’t invested in their community’s success; you’re wrong. They care deeply and will tell you so if you take the time to ask.
