Local businesses forced to close?

UPDATE: According to the city of San Marcos, a grace period has been granted for water to be shut off to the building. "Conversations are still happening between the City, County, and property owners," Lauren Surley, director of Communications & Intergovernmental Relations for the city of San Marcos said. "Barring any TCEQ enforcement against the City and County, the City of San Marcos has committed to the property owner that the water cutoff will happen no earlier than March 31."

ORIGINAL: Gray Horse Saloon, The Pita Shop and more face threat of closer over wastewater issues

It was a week of profound uncertainty and confusion for those who run businesses at the Crestwood Center off Old Ranch Road 12. Many had received verbal notice that they must vacate their premises in less than two weeks, as water services would be cutoff either March 16 or 17.

The potentially impacted businesses and organizations are Three Six General, The Gray Horse Saloon, AJ's Ranch Road Grill, Meadows Insurance Agency, Iglesia Cristiana Vida Nueva, The Pita Shop, Steger's Chiffonade, Shaolin-Do School of Martial Arts, and Studio San Martian.

With no formal written notice, business owners said they could not understand what was happening and why the notice was so short.

It turns out this was the tip of a bureaucratic and environmental iceberg for the city, the county, the business owners and the landlord, UC2, LTD, that as of Friday was not resolved but did appear to be moving in a direction of resolution. Whether everyone will be happy with the resolution is yet to be seen, according to many of the businesses interviewed this week in connection to the ongoing situation.

On Friday, a visit to the center showed businesses operating normally with regular customers coming in for food and conversation, not knowing the underlying struggle facing their favorite places to stay afloat amid a water and septic crisis.

Lauren Surley, director of communications & intergovernmental relations, communications for the City of San Marcos, in an email stated,“The privately- owned shopping center is located in Hays County but is provided water service by the City of San Marcos. The property’s septic system, which is shared with a neighboring private business that annexed into the city limits, is out of compliance with regulations and poses a health and safety risk to the community.

“The City of San Marcos and Hays County have been in contact with the owners of both properties for years to discuss options to safely address their wastewater needs, which included holding meetings with the property owners and tenants to keep everyone up to date on discussions, but no resolution has been reached among the involved property owners,” Surely stated.

“In response to the ongoing health and safety risk the failed septic system poses to the community, there is a potential that the City of San Marcos will be forced to cut off water service to the shopping center, but that decision is still pending action on the part of the property owners. The business owners have been aware of the possibility for about six months. The City of San Marcos and Hays County continue to work with the owners to come up with an amenable solution,” Surely stated.

“We have been made aware that the property owner gave tenants a deadline to move out of the building and are monitoring the situation,” Surely stated.

The turmoil sent business owners on the cliche but appropriate roller coaster of emotions and fears for what lies ahead should they have to leave the center. Omar Aldmour and Susan Mutschlechner, who run The Pita Shop, Pamela Steger, who owns Steger’s Chiffonade, an award-winning bakery and caterer, and Kelsey Huckaby and Jason Sherman of the Studio San Martian struggled with the conflicting information.

On Thursday, in a telephone interview, Aldmour said he was told by his landlord, UC2, LTD, that the water would be cut off later in the month, and that he should plan on that and vacate. Without water services, the septic system cannot operate, and similarly, businesses, especially those providing food, cannot function.

Aldmour said, “I don’t know what’s going on.” He added that he had received no written notice from the city. “We did receive a notice yesterday [Wednesday], from the landlord’s son,” about shutting down, Aldmour said, adding, “I didn’t get any sleep last night.”

“We don’t want to go anywhere. This is my only livelihood,” Aldmour said, noting he is raising a 7-year-old daughter, and a week to make changes is catastrophic for his family. The shop has been open here for more than seven years. He also voiced concerns for his staff of six employees.

On Friday at the restaurant, Aldmour’s partner, Mutschlechner said she was also amazed at the quickness of the actions taken to send the businesses scrambling to consider what to do in the face of the news.

Steger said, “We have a failing septic system,” and that the problem is not a recent one. She employed two full-time staff and said her business “is a labor of love.” Trying to source out a kitchen or new business location presents both time and economic hardships for her, she said. The businesses work well with one another, she said, adding, “We’ve all been very much in conversation.”

“10 days notice is not acceptable,” Steger said.

Some of the other businesses affected by the announcements include The Gray Horse Saloon, AJ’s Ranch Road Grill, Three Six General Butcher Shop, and across from the Center, Ranch Road Storage and U-Haul dealer.

The owner and operator of the storage facility was not immediately available for comment regarding the situation. According to some information provided by other businesses, it is possible that the bulk of the septic system is on that property, but this could not be confirmed at time of press.

Huckaby, with Studio San Martian, was reached by phone in Colorado, and she confirmed that her business had also received notice of a March 16 water cutoff.

Huckaby said that her business has events scheduled throughout the month, including live music and others difficult to reschedule.

“You can rent our space,” she explained, and so such events as yoga and performances are routinely held here.

She said, “We are trying to come up with backup plans.” Her staff is mostly volunteer but there is one employee who manages the space, she said.

When reached by telephone on Friday, Jimmy Umstattd, representative and spokesperson for UC2, LTD, who described himself as the owner of the center, said, he could not provide specific details but was “personally regretful.”

Instead, he spoke of the history of the center and his concern and appreciation for every business now in operation there, saying that the company “was doing everything possible to save these world class businesses.” He said there were 10 businesses on site.

“I am trying to do everything I can,” he said.

“I think it was sometime in 1997, that Crestwood Center was purchased,” he said. “Crestwood is not in the city limits. Anything to do with wastewater is county.”

Despite the city stating that they and the county have had multiple discussions with the property owners, Umstattd's position differed.

“I have never received [written] notification from the city as to any kind of intention they might have,” to suspend water services to the site, Umstattd said. “No one from the city has notified UC2 of anything. We heard about it from hearsay,” he said.

“I respect everyones liberty and freedom at Crestwood Center,” Umstattd said. “Everybody deserves to be able to survive.”

Business owners and Umstattd said they are hoping for a solution that will make everyone happy.

“I would like to see that happen,” Umstattd said. “I’m not a flipper. … This is a very long term, piece of property investment.”