Businesses battle back, but flood's impact is still felt

Jack Mammola opened his first Natalie's restaurant 43 years ago, naming it after his mother. It operated in Cambridge and Danvers, before moving to Ipswich four years ago.

But today there will be no Mother's Day at Natalie's. Mother Nature polished off the Italian eatery a year ago, when the Ipswich River slammed into Natalie's, filling the restaurant beside the Choate Bridge with 5 1/2 feet of water.

Mammola tried to salvage the mahogany chairs and oak tables. Without income, he could not make rent, utility, and tax payments. The US Small Business Administration turned him down for a $56,000 loan, citing weak credit, he said.

"I couldn't reopen," said Mammola, 68. "We enjoyed serving the finest food we could. It really upset me that I couldn't get the loan. Yes, the three years before [the flood] were hard. . . . But what about the 40 years when I had a nice business? Shouldn't they count, too?"

Across the North region, businesses are still paying for the Mother's Day deluge. Swollen rivers and streams closed downtown Amesbury, Ipswich, and Peabody. A stretch of Route 1 in Saugus was closed for three days. Elsewhere, flooding on Route 114 in Middleton forced Bob's Better Hearing to move a block up the street.

"If someone has a hearing-aid emergency, they're not going to wait until you rebuild your shop," said owner Bob Watts , who recently added eyewear to his services. "In two weeks, I was back in business."

The US Small Business Administration approved 109 loans totaling $10 million for businesses in Essex, Middlesex, and Suffolk counties. Still, recovery has been neither swift nor easy. Harsh images, including National Guard troops on alert and burlap sandbags holding back water, lingered long after the water receded.

Today a steady stream of shoppers has yet to return to either Ipswich or Amesbury, merchants said.

"I don't know where the people are," said Julia Tarr, a shop owner who heads the Downtown Merchants Association in Amesbury. "I can see them driving through, but they're not stopping. As a business association, we're very concerned."

"It's quiet for everybody," said Matthew Behnia, the 12-year owner of Ipswich Oriental Rugs , located next to the Choate Bridge. "Most people I talk to in town aren't doing very well."

But Tarr and Behnia don't blame Mother Nature entirely.

"The economy has hurt," said Behnia, who sells rugs imported from his native Iran. "Gas prices are high, homes are losing value. I don't think people are spending."

"I just don't think people have extra money," added Tarr, owner of Embellishments, a home decor shop. "The economy isn't good. I can't blame that on Amesbury or the floods."

Others are stumped by the drought of shoppers.

"I don't know what the problem is," said Liz Frame, owner of Fancy Schmancy , an antiques shop on Main Street. "People who come to town say they love the shops, they love the restaurants. There just aren't enough people who come."

On Route 1 in Saugus, thousands of motorists a day whiz down the highway dominated by national chains. But the flood was costly.

Angelique's, a dress shop, had a makeover. The shop closed for two months last summer. New mirrors, rugs, and display cases were installed. Repaired walls now sparkle with prom gowns. "Business has been amazing," said manager Tina Thomas . "But I don't think we'll ever be able to forget what happened."

Local officials hope the tide has turned in their favor.

"Short term, the floods hurt us," said Amesbury Mayor Thatcher Kezer. "In the long term, I think there was a greater awareness of the rest of the downtown. Once people were assured we weren't wiped off the map, curiosity brought people back."

In Ipswich, special events, such as holiday caro lers on Market Street, aimed to set a new tone. At least two new shops have opened. The Ipswich Explorer, a shuttle bus from downtown to Crane Beach, is due to start on Memorial Day weekend.

"After the floods, we started advertising. We had round-table discussions with [town officials], where we asked 'What are we going to do to get more people to town?' " said Ray Morley, president of the Ipswich Chamber of Commerce.

Amesbury has also trained a promotional eye on downtown. Yesterday, for example, shops planned to host "Build a Bouquet," with each one giving a different flower to shoppers. A two-day sidewalk bazaar starts June 30.

"We probably really need constant promotions," Tarr said. "A lot of people only remember the floods, but we really have a beautiful downtown."

Kathy McCabe can be reached at kmccabe@globe.com.