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Small Businesses Have Big Problem

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By LAURA KINSLER

The Tampa Tribune

Published: May 28, 2008

NEW TAMPA - Deana Mazurkiewicz and Adrienne Reed tell nearly identical stories.

Five years ago, each opened her dream business. Mazurkiewicz's Bow Wow Boutique in Tampa Palms is a popular pet grooming business with more than 4,000 clients. Reed has earned a loyal following at her yoga studio, Namaste.

Both say that when their leases expire this year, they won't renew. They join a dozen other small-business owners who are moving out of New Tampa - unable to keep up with soaring rents and management fees.

"Our building has been sold three times since we opened, and each time the new owner has raised the CAM fees," Reed said.

CAM, or common area maintenance, fees generally cover property taxes, maintenance costs and management fees. Reed said her CAM fees have multiplied six times since she signed her lease at The Walk. She decided to move the studio to Pasco County, where taxes are 32 percent lower than in Hillsborough.

"The only people who can afford rents in New Tampa are large corporations," she said. "Small-business owners are getting squeezed out."
Mazurkiewicz listed her business for sale in January.

"If it sells by August, I'll stay and work part time. If not, I'm moving it down the road," she said.

Mazurkiewicz's shopping center, The Pointe, has been sold twice since she signed her lease. Each time, the tenants were hit with higher CAM fees.

"When Inland Southeast bought the building, they didn't know the previous owner owed $110,000 in back taxes," Mazurkiewicz said. "All of a sudden, my rent increased from $3,210 a month to $4,600 a month, then to $4,800 a month."

Inland has sued two former tenants for back rent and fees. Mazurkiewicz said they are trying to collect nearly $30,000 from her for unpaid CAM fees.

"This has been a nightmare. I cringe every time I go to work the moment I open the door," she said.

Inland sold The Pointe to Phillips Edison & Co. in 2007.

"My new landlord wants to charge me $5,000 a month," Mazurkiewicz said. "Am I supposed to charge people $100 a dog? There's no feasible way."

The property manager for Phillips Edison could not be reached for comment.

Reed said she looked at space in Oak Ramble Plaza, south of Tampa Palms and over the county line. She found a larger space at Highland Oaks Plaza on State Road 54 in Land O' Lakes.
Mazurkiewicz said she has secured space at Palms Crossing, at Bearss Avenue and 30th Street.

Reporter Laura Kinsler can be reached at (813) 865-4844 or lkinsler@tampatrib.com.

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