Booted Businesses Blame Raised Rents on New Whole Foods Market

Business owners say a major market may be responsible for raised rents and terminated leases

A new Whole Foods Market is moving into a Laguna Niguel mall, but a number of nearby businesses aren't happy about it.

That's because their rents are being raised in anticipation of greater foot traffic. Some of the business owners say they can't afford to pay the higher rent and will have to move.

Jimmy Graesser owns a kickboxing studio. He says after 12 years in the same shopping center, he's now being kicked out.

Graesser received a notice from his landlord saying his current lease is being terminated.

"It never occurred to me to study real estate," Graesser said. "I thought I'd be here for a long time."

A few doors away, the owner of Mi Tierra restaurant says his lease wasn't renewed.

"After working with my family here all these years, I'm losing everything," said Rodolfo Gonzalez.

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Gonzalez and his family plan to borrow money and start over in Mission Viejo.

Local business owners blame their troubles on the new Whole Foods Market, which will open its doors May 16.

Store officials, however, say they're not subtracting from the local economy, but adding to it.

"Just at our store alone there will be 90 to 100 new jobs and we will sell from Orange County vendors," said Whole Foods manager Norm Shaughnessy.

Steve Rin frequents the Aliso Village stores and restaurants, but questions if this is really the right move.

"These smaller businesses have a hard time staying in business," Rin said. "This should be helping them, instead it's hurting them."  

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