In 1992, the Dang family left Vietnam in search of a better life. The family of seven settled in Seattle where both parents worked long hours at low-paying jobs to support their five children. About five years ago, after years of saving, the family opened the Dollar $ Plus Store on Martin Luther King Jr. Way South in the Rainier Valley.
But when Sound Transit started construction for its light-rail project, business at the store dropped off dramatically. Now that construction is complete, business is picking up again, but the Dangs’ family business is facing a new risk. The business’s rental agreement gives the landlord the option to raise the rent at any time and, once light-rail starts service through the Valley, the Dangs may be priced out of their storefront.
Ariel Magno and his wife Josephine own and operate Seattle Halu Halo, a Philippine restaurant not far from the Dangs’ store. In addition to working at the restaurant, Ariel Magno works two other jobs to support the couple’s three children.
“The restaurant was my wife’s dream,” says Ariel.
Ariel’s family emigrated from the Philippines in 1985 seeking greater economic opportunity. Ariel is the first in his family to become a business owner. The Magnos opened Seattle Halu Halo last November after taking over another business’s lease. Because the Magnos lacked the resources to hire legal counsel, they are hoping for the best with their lease agreement. Ariel Magno says he thinks his lease may be good for another two years.
According to the 2000 Census, the Rainier Valley, a largely minority and, until now, under-invested and low-income neighborhood within Seattle, has a population of approximately 24,000. Southeast-Asian and African-American residents predominately make up the neighborhood, but it includes many different ethnic groups and is recognized as Seattle’s most culturally diverse neighborhood. The Rainier Valley currently attracts more new immigrants than any other part of the city.
Since the 1980s, many Southeast-Asian-owned businesses have opened along Rainier Ave. S. and Martin Luther King Jr. Way S. More recently, refugees from East African countries also have settled in the area, with many of the entrepreneurially minded opening small businesses, further adding to the diverse mix of culture and commerce.
This cultural and commercial diversity adds much to Seattle’s quality of life; however, we are at risk of losing it. Rents already are creeping up now that Sound Transit has completed construction and many of the businesses that managed to stay open during the more than two years of construction are still reeling economically from the interruption of business operations. Conse-quently, once light-rail commences service along MLK Way in mid-2009, many of the minority- and immigrant-owned businesses will be at risk of being displaced by rapidly rising rents.
The bar can play a role in ensuring that many of these small businesses survive. The University of Washington’s Entrepreneurial Law Clinic is working with the newly formed Martin Luther King Business Association to identify low-income, minority- and immigrant-owned businesses that would benefit from pro bono legal assistance.
The Entrepreneurial Law Clinic (ELC) opened its doors in October 2006 and promotes economic development in Washington by assisting entrepreneurs and small businesses facing significant economic barriers to succeed by providing legal services designed to minimize risk and reduce operating costs. The clinic utilizes pro bono attorneys and matches them with student program participants.
Current attorney-student teams provide corporate, tax and intellectual-property-based legal services to business owners. The ELC is developing a new project that requires the involvement of attorneys specializing in commercial real estate matters.
Attorneys and students will be assigned to pre-qualified business owners who are operating without a commercial lease agreement or who have an agreement at risk of expiring prior to commencement of light-rail service. Specific-ally, the teams will meet with eligible small businesses, review their current lease agreements and identify weaknesses.
The attorneys and students will educate the business owners regarding the legal implications of current agreements. In the event that a business owner’s current rental agreement is month-to-month, the pro bono attorney will negotiate a new commercial lease on behalf of the business with the property owner, with the participating student observing negotiations.
According to Katie Meyer, the ELC’s program director, “Commercial leases are an important part of working with small-business owners, and exposure to these leases, the legal issues surrounding them and the opportunity to observe negotiations would be a valuable experience for students participating in the clinic.”
Consequently, when the ELC was approached regarding the proposed project, its program staff agreed it was worthwhile in terms of student learning experience and that it corresponded well with the ELC’s mission to assist low-income entrepreneurs facing economic barriers to success.
The ELC hopes to start providing this new service in April and is currently recruiting attorneys who specialize in commercial real estate matters. Additionally, because many of the business owners speak English as a second language, the clinic also is seeking translators.
If you are interested in volunteering as part of this effort, please contact Meyer at 206-336-5616 or the author at 206-794-2140. To learn more about the ELC, please visit http://www.law.washington.edu/Clinics/Entrepreneurial.html
Jennifer Burgess-Capoccia is one of the student founders of the U.W.’s Entrepreneurial Law Clinic. She is a 2007 U.W. Law School graduate devoting this year to continued development of pro bono legal resources for immigrant, minority and low-income business owners in the Rainier Valley. She will sit for the bar in July.
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