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Parts of Chapel Hill return to business. Others remain in limbo after Chantal

Key Takeaways
Key Takeaways

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  • Storm Chantal caused major flooding, shutting down key Chapel Hill businesses.
  • Insurance delays and cleanup costs stall reopening efforts at local shopping centers.
  • Town leaders and the chamber coordinate relief and fundraising for affected stores.

When Alfredo Mendes arrived at his Chapel Hill pizza shop early Monday morning, a sturdy mop took care of the water on the floor.

He was “very lucky” compared to other University Place businesses, a few who are still struggling to reopen, said Mendes, a native of Naples, Italy, and the owner of Alfredo’s Pizza Villa.

Remnants of Tropical Storm Chantal left many stores and restaurants in Chapel Hill submerged in 5 feet of water.

Alfredo’s will move across the parking lot next month to the ground floor of the 900 Willow building after 26 years inside the mall. The new location didn’t flood, Mendes said, and will have all new equipment, new menu items, and draft beer, local brews and wine.

For now, though, business is slow.

“We put the word out on social media, on Facebook, but I don’t think anybody thinks we’re open, because of what happened to the mall,” Mendes said.

The Chamber for a Greater Chapel Hill-Carrboro is also trying to get the word out, after chamber and town officials and others met with business owners from University Place, Eastgate Crossing and Mariakakis Plaza to hear their needs and concerns.

Eastgate and Mariakakis Plaza were the hardest hit, suffering a total loss. At University Place, more businesses are open, but others remain closed: Stoney River Steakhouse, Silverspot Cinema, WakeMed 365, Chase Bank, First Horizon Bank, Planet Fitness, Style Brows Threading Studio, and The Soap and Shine.

“My sense is that most of those business owners — their heads are still spinning,” said Ian Scott, vice president for advocacy at the chamber.

“There are a few I know that are absolutely determined to reopen in their current location as quickly as possible,” he said. “Others are going to need to see what happens from insurance, and they’ve got some practical funding realities to consider, because they’ll have to do complete new updates and buy all new inventory, and a lot of them lost a lot of expensive equipment, and there won’t be short buildouts either.”

Alfredo Mendes (left) pauses after putting a pizza in the oven at Alfredo’s Pizza Villa in University Place mall. He and his employees were one of the few businesses that remained open after the July 6, 2025, tropical storm.
Alfredo Mendes (left) pauses after putting a pizza in the oven at Alfredo’s Pizza Villa in University Place mall. He and his employees were one of the few businesses that remained open after the July 6, 2025, tropical storm. Tammy Grubb tgrubb@newsobserver.com

Stoney River issued a statement July 18, saying the restaurant could reopen in August after repairs are made.

“Our top priority is providing a safe environment for our team and guests and we look forward to serving the Chapel Hill community again as soon as we can,” the statement said. “We appreciate everyone’s patience and support during this time, and our thoughts are with our community as so many work through recovery efforts.”

Insurance leaves stores in limbo

At Mariakakis Plaza, the small, local shops perched above Booker Creek were cleaned out Wednesday.

Plaza owner Johnny Mariakakis said he spent Sunday night in his store, Mariakakis Fine Food and Wine, trapped by floodwaters that destroyed his business and his car.

His Greek immigrant parents opened Kwik-ee Takeout at that location in 1963 before transitioning to a popular sit-down business, Mariakakis’ Restaurant & Bakery. Mariakakis has been through floods before, but this might be the worst, he said.

“We’re all local businesses. These are Chapel Hillians. These are not multimillion-dollar corporations,” Mariakakis said. “Grandmothers come in for sewing and yarn classes at Mary Stowe’s (Yarns, Etc. store), they bring their sewing machines to get repaired. The only shoe repair person in Chapel Hill-Carrboro is down there. She’s 82 years old, and she refuses to leave and she refuses to close.”

Kathleen Fearrington, 55, sat outside The Shoe Repair watching a light drizzle fall Thursday. The insurance company refused to pay for their materials or to repair the store, she said, so they started a GoFundMe.

Her mom, Cinderella Riggsbee, took over the 40-year-old business in the 1990s, and doesn’t want to give up, Fearrington said. They hope the equipment, some of it decades old, can be dried out and salvaged.

“She said if she sits down, things are going to go wrong,” Fearrington said. “Her plan is to get it back up and running.”

It will take money, Mariakakis said. His church, St. Barbara Greek Orthodox Church in Durham, has started a GoFundMe to help.

Mariakakis Plaza has survived many storms since his parents opened a restaurant at that location in 1963, but flooding from Tropical Storm Chantal may be the worst he’s seen, owner Johnny Mariakakis said. His small-business tenants are going to need help, he said.
Mariakakis Plaza has survived many storms since his parents opened a restaurant at that location in 1963, but flooding from Tropical Storm Chantal may be the worst he’s seen, owner Johnny Mariakakis said. His small-business tenants are going to need help, he said. Tammy Grubb tgrubb@newsobserver.com

Eastgate still closed, a total loss

Only two businesses, Chopt and T-Mobile, were open at Eastgate Crossing on Thursday. Tractor-trailers, recovery crews, and ductwork from industrial fans filled the parking lot.

Guglhupf owner Sean Scott said his business was a total loss, and it’s still pretty chaotic. The chamber has been in touch, but the town “response has been all over the place” with letting tenants know what needs to be done and restoring the power. Insurance is also taking some time, he said.

He was ordering new equipment Friday, but it will take a couple of weeks. If everything goes as planned, Guglhupf could reopen by August, Scott said. He’s planning in the meantime for a Bake and Rebuild Bash on July 19 at their Durham location to help his staff and other businesses, he said.

“I think a strong community supports each other and, obviously, my team is my priority, but your business is only as strong as your community,” Scott said. “We’re hoping to do as much as we can for the others, too, in the process.”

A fundraiser was launched to help Kipos employees, too, restaurateur Giorgios Bakatsias said Monday as he surveyed the damage. A man pushed debris and water toward the front door with a broom, as wooden tabletops around him curled from being submerged.

Pans and food from Sunday night sat abandoned in the kitchen. All of their equipment will have to be replaced, said Jay Mehdian, a partner in Giorgios Group. The water was moving so fast, it overwhelmed them, Bakatsias said, but they will reopen.

“We have a great community, we’re doing very well, and it’s been a great location for us,” Bakatsias said.

Storm debris and water damaged items from Rose Nails in the Eastgate Shopping Center are discarded on Tuesday, July 8, 2025 in Chapel Hill, N.C. Most of the businesses in Eastgate were flooded by heavy rain from Tropical Storm Chantal on Sunday.
Storm debris and water damaged items from Rose Nails in the Eastgate Shopping Center are discarded on Tuesday, July 8, 2025 in Chapel Hill, N.C. Most of the businesses in Eastgate were flooded by heavy rain from Tropical Storm Chantal on Sunday. Robert Willett rwillett@newsobserver.com

Town, Chamber response ongoing

Chapel Hill Mayor Jessica Anderson toured the damage Monday and checked in with business owners midweek to learn more, she said. The level of damage in Eastgate and other places in town was “really sad,” she said.

The first concern is getting businesses and residents back on their feet, Anderson said.

“The staff worked tirelessly overnight, made sure everybody was safe, everybody was evacuated, who needed to be,” she said. But “with this level of climate change, with more severe storms coming through more regularly ... there is going to be damage.”

A disaster declaration could make more Small Business Administration programs, loans and employee assistance available, Scott said. The focus now is on getting the utilities back on and supporting business owners through the insurance claims process, he said.

“That will be a major hinge point for a lot of these businesses on the timeline for reopening,” he said.

Commercial landlords are typically responsible for structural damages, leaving tenants to insure personal property, such as materials and furnishings. Kite Realty officials did not immediately return an email seeking clarification about Eastgate’s insurance requirements.

The town and the chamber are offering short-term and pop-up locations to affected businesses, and co-working space at The Junction downtown or in the chamber’s offices on South Estes Drive.

The chamber has also set up a website to help business owners and share information about fundraisers and the South Estes Post Office, which remains closed. Learn more at carolinachamber.org/recover. A list of fundraisers for local, small businesses can be found at bit.ly/m/SupportSmallBizAfterChantal.

In the Spotlight designates ongoing topics of high interest that are driven by The News & Observer’s focus on accountability reporting.

This story was originally published July 12, 2025 at 7:00 AM.

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Tammy Grubb
The News & Observer
Tammy Grubb has written about Orange County’s politics, people and government since 2010. She is a UNC-Chapel Hill alumna and has lived and worked in the Triangle for over 30 years.
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