Ice Storm Helps, Hurts Businesses

Power outages on Franklin Street caused by the ice storm in early December had major economic effects on local businesses -- but not all were negative.

A dichotomy emerged between those businesses that had power and those that did not. Generally, local businesses on East Franklin Street were without power for at least four days after the storm, although some businesses on West Franklin Street did not lose power at all.

Billy Sentelle, general manager of Ham's Restaurant, said that because the restaurant did not lose power, it was packed with desperate residents throughout the ice storm.

"Our (occupancy) limit is around 160 people; we pushed that from the time we opened to the time we closed," he said. "(The ice storm) made a huge difference."

On the other hand, Miami Subs, which was without power for four days, had estimated losses of between $10,000 and $15,000, said owner Arthur Dragoslis.

"It was the last good weekend before the holiday break," he said. "It was money that was much-needed."

As a result of such economic difficulties that arose because of the ice storm, the Chapel Hill-Carrboro Chamber of Commerce set up the Business Disaster Relief Network to help local businesses.

Virginia Knapp, director of external affairs for the chamber, said that the network was a resource for local businesses but that it did not have funding to allocate to businesses.

"We were hoping to make it easier for our members to access funds, but with this one there weren't any," she said. "The government only gave money to government agencies."

The Federal Emergency Management Agency is providing money for disaster relief to North Carolina, but only to its agencies.

FEMA officials estimate that it will cost $500,000 to $750,000 to clean up Chapel Hill alone.

The chamber has been in contact with the Small Business and Technology Development Center, which provides counseling to small businesses in a five-county area.

Ron Ilinitch of the center said the office was without power for five or six days, which prevented it from acting immediately.

"(The ice storm) was a crippling blow in an already difficult year for some businesses," he said.

Christy Moore, owner of Whims Cards & Gifts, said the ice storm caused a great deal of damage because it hit just before a major shopping weekend. However, she said, the key to businesses' revival is for shoppers to come out and support local merchants after the storm.

"(The loss) was a significant amount because they were my five biggest days of the year, historically," Moore said. "We need customers on Franklin Street. We need the students and employees rooting with us."

The City Editor can be reached at citydesk@unc.edu.