WATERLOO - As he watched fresh produce rot on shelves after the immigration raid in Postville, Gilberto Garcia realized it was time.

The owner of El Regreso in downtown Waterloo had been toying with shutting his doors and accepting a buyout from the city, which wants the land for redevelopment.

When business slowed to a trickle the week of the raid, Garcia piled boxes of moldy tortillas in a Dumpster behind his store. He then cut prices 30 percent and resolved to close by the end of the month.

Despite few obvious ties between Hispanics in Waterloo to those in Postville, Latino business owners report workers suddenly absent and slow sales, which threaten the stores' survival.

Garcia dusted off a certificate from the city dated Oct. 4, 1994, thanking him for opening what he claims was the first Mexican business in town, El Rinconcito. It is something he takes pride in.

But he said now is the right time to bow out: This is the third immigration raid he has lived through in Iowa.

"I've seen this happen twice. It always takes at least a year for people to regain trust," he said. "That's why I'd rather close - it's going to take time to recover."

The effect has been more muted at La Chiquita, which serves many professional workers in downtown Waterloo during lunch. Beverly Ayala, who owns the business with her husband, said sales of certain items are down, and she had to train two new workers.

Two employees, both from El Salvador, quit last week though they had work visas. Ayala said the workers' parents believe immigration agents arrest people first and ask questions later, so they sent their children to stay with relatives.

"It affects everybody, no matter what anybody says," Ayala said.

At La Placita, business plunged following the raid.

The store sells fewer tortillas and can't move any beer, and the man who usually makes fresh cakes in the store hasn't come to work for more than a week. He insists on baking them in his home, at least until federal agents leave Waterloo, said Juan Carrillo. His brother, Manuel Carrillo, owns the store.

"My construction workers don't want to come in and buy beer," he said. "You wouldn't believe it. Everyone got traumatized or something."

At Rodeo Moda, a clothing shop next to La Placita, owner Laura de Gomez said many people left town. She's not sure when - or if - they will come back.

"I've sold many more bus tickets and plane tickets than I normally would," she said.

These days, de Gomez said, she seems to spend more time helping people sort out their problems than selling merchandise. Because she sells nonessential items like jewelry and cowboy boots, she has seen an especially steep decline in customers.

With no end in sight for sagging sales, de Gomez said, she may take a part-time job to make ends meet.

"I don't know if I'll survive. Right now I'm doing more social work than business.".

Contact Jens Manuel Krogstad at (319) 291-1580 or jens.krogstad@wcfcourier.com.