What comes to mind when you think of Ithaca? Is it the famed Moosewood restaurant, cascading gorges or Cornell University overlooking Cayuga Lake? Ithaca’s identity seems rooted in its alternative, hippie culture — hikers at every turn, farmers markets in full swing, arts and crafts fairs and community events like Porchfest drawing crowds.
But that image no longer tells the full story. The reality of Ithaca today is an increasingly monopolized city, shaped largely by Cornell University and its surrounding neighborhood, Collegetown.
The most obvious monopolies in Ithaca are the landlords. Property giants like Lambrou, O’Connor and PJ dominate the apartment and housing markets, owning a huge portion of properties on Eddy Street, Catherine Street, Cook Street and Dryden Road as evidenced by their website listings. College Avenue is seeing the rise of new construction apartment buildings, reshaping the Collegetown skyline.
As a fellow Sun writer described in The Tale of Cornell’s Broken Housing Market, huge demand g and limited supply allow landlords to neglect maintenance, charge exorbitant rents and even violate tenant rights. I’ve heard horror stories of lease agreements with incorrect dates, withheld security deposits for pre-existing damage, and, in one case, a landlord who asked for a “tip”just to turn water on.
While it may seem like there are options in the Cornell housing market, the dominance of a few powerful property management groups supplying housing for tens of thousands of students creates an uncompetitive and frustrating system. Students, often only renting for a year or two, are often left with little recourse when things go wrong.
But monopolies extend beyond housing, into less obvious channels. Take, for instance, Thompson and Bleeker. This popular restaurant shares ownership with Fresh Marché, Chatty Cathy and Ithaca Wine and Spirits — a seemingly unconnected pizzeria, sandwich stop, juice bar and liquor store all owned by the same couple.
Thompson and Bleeker’s ownership is somewhat transparent about this connection on the restaurant’s website, noting that “George and Milly also own Chatty Cathy Cafe and Ithaca Wine and Spirits on Eddy Street in Collegetown.” However, neither of the latter three establishments mention this connection, and I have never seen any statement of ownership in-store. The ties don’t end there. The website also mentions a family connection to The Souvlaki House, another Eddy Street establishment. With a new Fresh Marché location opening soon in Collegetown, it’s not hard to feel surrounded — and increasingly cornered by what seems to be a single brand’s delicious, but pervasive, culinary empire. In a city of just 34,000, owning a handful of businesses has a big impact on consumer choice.
To be clear, I’m not opposed to a family business expanding out to new horizons. Koko, Le Café and Lotus, for example, are also owned by a local couple, who are often seen serving diners at Koko, their first restaurant. Economies of scale help keep margins tight, allowing small business owners to survive in a notoriously tough industry. And these small businesses face their own challenges: powerful real estate moguls threaten these smaller businesses. Charlie O’Connor of O’Connor properties and Nick Roberston recently bought the land that currently houses Koko, and are constructing a new eight-story apartment building. Luckily for fans of Korean food, Le Cafe and The Lotus remain — for now.
Another story plays out with Luna Street Food, Loco, Purity Ice Cream, Pronto Ice Cream and Jack’s Grill. A friend of mine, a former employee of Loco, confirmed that all establishments are owned by the same group, specifically owner Kevin Sullivan. They also own a number of online storefront establishments through Ithaca Ghost Kitchen advertising as various establishments across delivery apps. Jack’s, a fast-food joint in Collegetown, and Loco, a bar, both closed earlier this year — proof that even monopolistic business models can fail.
Perhaps the monopoly that confuses me most is Student Agencies. With ventures in shipping, marketing, moving, real estate, tutoring and yearbook sales, Student Agencies seems to have its hand in everything. Whether you’re looking for a “Student Influencer Marketing Program,” a $160 yearbook ( plus $30 shipping) or a one-bedroom apartment boasting a $3,295 monthly rent, Student Agencies has it all — as long as you can pay.
Many of my friends have worked for the company in some capacity, yet I still wonder: How can one company — composed mostly of 18-22-year-old students — successfully manage real estate, restauranteering, tutoring, marketing and whatever else they choose to expand into next?
Like other local real estate firms, Student Agencies earns under three stars on Google Reviews, with no shortage of negative feedback on Reddit and other platforms. While you can choose whether or not to pay more than $3,000 a month in rent, I’m personally outraged by the yearbook pricing. After paying $15 just to have my photo included, I was offered the bargain of $149 for a single digital image or $399 for all 16. Printed packages, with no frames or special add-ons, start at $185 and extend to $549.
Every senior should be able to have a yearbook from their time at Cornell without coughing up a minimum of $160 — plus the $15 already required to include their photo.
Unfortunately, none of this is surprising. With rising tuition costs, growing interest in courses like AEM 4572: Entrepreneurial Finance and Private Equity and countless clubs geared towards management consulting, it’s clear that students, administrators and local businesses alike are interested in student profiteering.
The people of Ithaca — students and locals alike — are left to bear the brunt of these exploitative business practices,from price gouging to a lack of transparency in business ownership. And as the cost of living and housing prices rise, these issues extend well beyond the four year college experience. The city’s once-crunchy, countercultural spirit is losing out to corporate consolidation.
This is a cycle. With sky-high real estate prices — the Koko property sold for $16 million per acre — new entrants to food, housing or retail markets are disincentivized from investment. This leaves only well established businesses who can afford to take the financial risk of expansion. Restaurants like Thomson and Bleeker and Koko have shown proof of concept and profitability, and have built a customer base — enabling them to test the waters in new establishments. Maybe Ithaca isn’t expensive because it is monopolized, but it is monopolized because it is expensive.
Students, too, are not blameless. I encourage anyone interested to read Cornell’s Rural Humanities report, which outlines how landlords are able to take advantage of a yearly inundation of college students, many of whom come from wealthy backgrounds and can pay rents far above the Ithaca average. Without meaningful policy change, the cycle only continues. And because students are only here for a handful of years, we vote with our wallets far more often than with our ballots in local elections.
If we want to preserve the Ithaca we love — the one of gorges and granola and grassroots — we need to ask tough questions about the systems at play. Who benefits from these monopolies? Who is left out? And, most importantly, how can we rebuild a community that values transparency, fairness and people over profits?
Julia Poggi is a senior in the College of Agriculture & Life Sciences. Her fortnightly column The Outbox is a collection of reflections, advice and notes to self about life at Cornell, with a focus on coursework-life balance. She can be reached at jpoggi@cornellsun.com.
