[ The Atlanta Journal-Constitution: 11/13/02 ] Life's situation slips off campus Nearby shops taking a hit as effect on county economy begins stirring unease By PHILLIP TAYLOR Atlanta Journal-Constitution Staff Writer Barely a month ago, an afternoon styling at Picasso in the Barclay Village shopping center was by appointment only. But the recent failure of Life University to hold onto its chiropractic credentials has made even the walk-in clients scarce, leaving the salon with empty chairs. Steady customers have become former clients. "It's awful," stylist Frida Enghi said. "Everybody is coming in here and saying goodbye, because after Christmas they're leaving." Picasso and other businesses in the Marietta shopping center on the edge of the Life campus experienced the first fallout from the university's loss of accreditation. A complete Life University meltdown could result in the loss of more than $100 million in Cobb County's economy, according to an economist at Kennesaw State University. Life failed in a final effort to hold onto its accreditation after a panel determined on Oct. 20 that the Council on Chiropractic Education rightfully revoked its credentials last June. The blow to Life's largest degree program puts the school's survival in jeopardy. Life students, meanwhile, began seeking chiropractic instruction elsewhere. More than 1,000 students have withdrawn from the school since June. But Life's interim president, Michael Schmidt, promised to keep the school open. The university reapplied for accreditation on Oct. 21, a process that could take more than two years. The school also has stripped about $6 million from its $38 million operating budget. Schmidt also said the school has enough in reserves to stay open for a year. Based on university budget numbers and student spending patterns, Life accounts for about $100 million of spending in Cobb each year, said Roger Tutterow, director of the Econometric Center at Kennesaw State University. Tutterow said a loss of $100 million to Cobb businesses might be realized only if Life shuttered the campus and all of its students left the area. "Many who moved here to work at or attend Life will remain," he said. "My guess is that, in the short run at least, the majority of students here are already employed. They will likely stay here and work until some of the uncertainties at Life University are worked out." But if the university were to continue to lose students and begin cutting employees and campus construction projects, the impact could be considerable, Tutterow said. "I would believe that," said Marietta Mayor Bill Dunaway, who recently sold his own restaurant in a move unrelated to Life's troubles. "And I know a lot of them. Over the past 10 years, I have had more than 100 chiropractic students working for me at the 1848 House restaurant." The university itself, he said, has contributed to the Marietta community in other ways. "Life has been a good neighbor and not just for their wonderful Lights of Life Christmas show," Dunaway said. "They are very supportive of the arts here and very supportive of the community." Meanwhile, the impact on Barclay Village shops has been immediate and severe. "Oh, it's had a drastic effect on us," said Leandro Dias, an employee of Salerno, finishing only the second order of the day one recent afternoon. "There's no two ways about it. Usually there's a steady gust of customers, but now it's dead." Noticing the depression in the few Life students still frequenting the pizza parlor, co-owner Tom Nagarajan tried to boost Salerno's offerings. The parlor altered its menu and prices and started hosting a karaoke night on Wednesdays and Fridays and a trivia night on Tuesdays. Few have showed up. At Fade-Away Barber Shop, Red Williams said customers have been more than depressed. They're angry. "They have no choice but to find another school," she said. "And some of these people had just moved in. They started school just a month ago." At the other end of the shopping center, at Picasso, a visitor asks Enghi about business. "Don't ask me," Enghi responds. "You know."