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| 2/14/2009 5:55:00 AM | Email this article • Print this article | Coldwell Banker closes its doors
by Nick Wognum
One of Ely's largest real estate companies closed its doors this past week.
Coldwell Banker First Ely Realty, located on the 200 block of Sheridan Street, has gone out of business.
For owners Larry and Barb Lionberger and their daughter Heather Engstrom and her husband Bryant, it was a very difficult decision.
Lionberger said the two couples spent the last six months trying to find ways to keep the business going. "There were a lot of late nights and long days and being done is a relief in some ways."
A combination of a real estate market that bottomed out and a national economy in trouble, were listed as the top reasons for the business failing.
"We bought in March of 2006 and if you look back that's just about the time the real estate market essentially started to tank," said Larry Lionberger.
"We went through two and a half years of that and then in the last 60 days we all know what's happened in the national and international economy so that tanked, further depressing the real estate market and with the credit market going down when you do sell a house you can't really get financing any more or it's extremely difficult.
"With the business obligations that were due this year it just became apparent that we needed to close. None of us think that now things are going to turn around fast enough.
"In some ways we were thinking this might work here more than anywhere else. We thought for a change northern Minnesota was made in better economic shape with the precious metals projects and the positive notes on the rest of the mining for a change it looked like we were ahead of the curve compared to the rest of Minnesota and the rest of the nation. But instead, this whole economy deepened."
What happens next?
"The agents are in the process of deciding if they are going to continue and put their license somewhere else. We don't know what we're going to do," said Heather Engstrom.
"We don't know if we're going to try and stay and try to make it here or if we're going to try and find jobs somewhere else."
For the Lionbergers, they will look south.
"Barbara and I are going back to Brimson to the home we have down there and I'll be looking for work in the Duluth area," said Larry Lionberger.
The toll of the business closing and the loss of the investments made will hit both families.
"We're going to have to start over," said Heather Engstrom.
But all four said they were impressed with the number of people stopping them or calling to express their support.
"It's been unbelievable the support we have received in town," said Heather Engstrom.
"And not even from people we deal with but other business people and just people," said Larry Lionberger. "The tremendous amount of support from people who have called and said we know what you're going through. It's been a real positive thing. It makes you remember why you wanted to be in Ely in the first place."
"We didn't want this to happen, we don't like that it's happened but there's been an awful lot of positives that have come out that are reflective of what we love about Ely," said Larry Lionberger.
Agents at Coldwell in addition to the Engstroms and Lionbergers were: Lori Schulze, Doug Furnstahl, Jan Erchul, Flossie Strickland, Don Stocks, Jerry Fink, Kris Schmidt, Muffin Nelson, Tom Lydon, Gary Erchul, Beth Rykken and Jan Erchul.
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