The longtime owner of downtown's historic Sterling Hotel and Chanterelle restaurant is closing the businesses next month – citing a tough economy.
"At the end of last year, we thought things would turn around in 2008 but it hasn't happened," says Sandi Wasserman, who opened the 17-room boutique hotel in a former boardinghouse with her late husband, Richard Kann, 20 years ago.
She says she now will focus on her more profitable midtown businesses, the Vizcaya Pavilion events center at 2019 21st St. and the adjoining nine-room Vizcaya Mansion bed-and-breakfast hotel.
Her chef, Jim Turknett, and most of her banquet staff will be moving to the midtown operation. Other employees were informed Thursday that they'll be out of work after Aug. 16, the Sterling's final day of business.
"There were tears," the 62-year-old Wasserman says of the meetings with employees. "It was very sad."
A slowing economy was the final blow for an operation that, Wasserman says, always had challenges.
With just 17 rooms, the Sterling didn't have its competitors' economies of scale, she says. And adding new space was tough because the 104-year-old building, at 13th and H streets, is a historic structure.
Luring guests wasn't a problem, says Wasserman, who reports that occupancy was a very respectable 76 percent last year and 70.6 percent this year.
But in a down economy, "Our costs were rising and we couldn't raise our rates," she says.
What becomes now of the Sterling site?
David Miry, a partner with D&S Development – the property's owner – says he's looking for a new operator to take over the Sterling and Chanterelle businesses.
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Fun and games: It sounds a little like day camp. Movies, bowling, dress-up days.
It's all part of the "summer of fun," designed to lift staff morale and foster better communication at Rocklin's Augustine & Associates marketing, PR and advertising firm.
The program started in June. Since then, staffers have been meeting in the office at lunch to watch DVDs, holding costume contests for special theme days and going out en masse once a week – during work hours, with pay – to bowl, catch a film or have a barbecue.
One goal is to better acquaint the two staffs brought together by Augustine's purchase last year of Consumer Effects International of Sacramento, says Julie Fraga, the company's PR manager. Another is to help employees cope with the economic downturn.
"We're just saying, hey, we know it's a rough time. Let's get together, get through this and make it fun," Fraga says.
One highlight: a Hawaiian-themed costume contest in which the winner wore "palm-tree pajamas with a grass skirt and coconut bra over them," Fraga reports.
The winner? The company's boss, Debbie Augustine. Hmmm. Was the voting rigged?
No way, Fraga says. "We're competitive here. We wouldn't let her win just because she's the CEO."
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Lipp service: Our apologies to Doug Lipp, the local consultant and frequent flier whose new book on the trials of traveling was the subject of a column item last week.
Inexplicably, we referred to him as Doup, not Doug. Fortunately, he's understanding about it.
"With a last name like Lipp, I don't think I'll be confused for anyone else," he replies via e-mail from South America, where he's conducting seminars this week (and likely collecting more harrowing travel tales for his next book).
He reports that he appeared on a popular TV talk show Tuesday in Venezuela and was introduced as "Dog Leaps."
We feel better.
Reach Bob Shallit at (916) 321-1049. Back columns: www.sacbee.com/shallit.
