MonteLago Village shopkeepers hope worst of recession over

The sun bakes cobblestone streets and the single boat floating on Lake Las Vegas. Water laps gently at the lake's edge while a slight breeze takes the heat out of a 90-degree day.

With the scene framed by a Tuscan-themed village of shops and a decidedly European feel, life by the lake seems slow and lazy, not to mention carefree.

But there's an undercurrent to that mood. At its height, a steady stream of shoppers strolled through the village buying designer clothes, a gelato, a slice of pizza or even some Latin American furniture.

These days, the only thing in abundance at MonteLago Village is the sunlight. Two women sit on a bench overlooking the lake; a party of four eats on the patio of an Italian restaurant. The only other people in sight are a couple of shop owners standing outside their stores. They drink in the view and stretch their legs before going back inside, where they do a lot of waiting for customers and not much waiting on them.

Weekdays have been slow since the village opened in 2003, says Sue OLeary, owner of Rocky Mountain Chocolate Factory. But the recession has only made matters worse.

Last year saw a string of bad news: The original Lake Las Vegas developer filed for bankruptcy, followed by the owners of the Ritz-Carlton. The new owners of Lake Las Vegas closed one of the resort's three golf courses. There also were reports that the lake could drain away if underground pipes weren't repaired, a problem later addressed by the new owners.

As the bad news came out, the weekdays got even slower, OLeary says. Never mind that the bad news had nothing to do with the stores.

"The doom and gloom reports hurt us bad. The bankruptcy stuff buried us," says Don Saunders, who with his wife, Karen, owns three shops in the village.

Business also declined when the resort didn't have money for the major events that had increased foot traffic in the restaurants and stores, say shop owners.

Mention Stars on the Lake to any store owner and you're sure to get a wistful sigh. Those concerts, where big names played, drew thousands, OLeary says.

Lake Las Vegas residents, such as Keko Mottes and his wife, Julie, became even more vital to village shops. The Mottes regularly dine in village restaurants and shop in the stores. Most residents are well aware of the symbiotic relationship of the lake's neighborhoods and its businesses, and know they have to play a major role as customers, Mottes says, especially during an economic downturn.

"There's always the concern that things that happen in the economy might affect the Lake Las Vegas facilities and amenities," Mottes says. "But I'm pretty confident they're working those issues through."

Lately, there is reason to hope that things could be getting better. The warm weather of approaching summer brings with it renewed weekend events on the grassy bank of the lake. They may not have the big performers, but the lake can still stage Jazz by the Lake, movie nights on Thursdays, cover bands on Fridays.

Art festivals and wine walks and even triathalons attract people who may buy something in the village. And if they don't shop that night, they may come back, OLeary says.

There's even a rumor that the golf course will reopen, says Linda Karosas, owner of Scruples boutique in the village.

Karosas also lives at Lake Las Vegas, so work and home life both are invested in the lakeside resort's future. When she opened her store in 2004, business was strong.

"I believe the housing market was very strong here," she says. "Lake Las Vegas was such a new concept; we have our golf courses, all of our basic needs here. There was no need to leave."

When the housing market crashed, Karosas started seeing foreclosure notices and for sale signs in the neighborhoods. Now, though, she is seeing less of that on her daily jogs. Residents still host barbecues and meet-and-greet luncheons, which she attends. Her neighbors are her friends and customers, and so far, none of them is talking about leaving, Karosas says.

"You just have to wait it out," Karosas says.

She and her husband bought a condominium and a house at the lake and plan to keep both. Property values have dropped, she notes, but she's confident that they will find a "happy medium."

Business slowed so much over recent months that she closed off the upstairs part of her shop, but plans to eventually reopen it, probably next year. You have to be realistic, she says.

"You have to make changes," she explains. "I took people I had employed here and I had the benefit of moving them to the store in the Forum Shops. We also noticed that we're not busy in the morning but we're busy at night, so now we open at noon."

Although the perception has been that the village is going out of business, it has more tenants than ever before, says village manager Maurice Talley. Out of 34 spaces, only two vacancies remain.

Don and Karen Saunders are preparing to open two art galleries. Don thought it hurt every store owner when visitors walked through the village and saw empty spaces. People need a gallery or two where they can get a glass of wine and walk through, he says.

In the front window of one gallery, a Murano glass sculpture of a dolphin is on display, along with its $19,000 price tag. Who will buy something at that price in this economy?

Ritz-Carlton guests and residents of the wealthier parts of Lake Las Vegas, he predicts.

"We're so high on the village," Don says. "Having lived through the 1980s recession, we know it's going to get better. It's a confidence thing."

The couple bought a house at Lake Las Vegas three years ago. Karen, who used to work in administration at the Ritz-Carlton, decided to open the Turquoise Door, a Southwestern jewelry and art shop, about six months ago.

"It was just a good time for us. I'm at a point in my life where I didn't want to work for someone else," Karen says.

The fact that it wasn't a good time for retail didn't matter.

"Life is very short," Karen says. "If you don't take your risks, life is going to pass you by."

Contact reporter Sonya Padgett at spadgett@reviewjournal.com or 702-380-4564.