Investing downtown
Uniontown Mayor James Sileo wants to spend $6 million of the public’s money to change the landscape of the downtown. He envisions that if the city increases parking, makes some aesthetic and infrastructure improvements and purchases and renovates a few buildings, businesses will be enticed to locate in the Central Business District. While his plan is bold, expensive and bears the mark that Uniontown isn’t afraid to invest in itself, the question must be asked what is the end result? Will any of this increase the number of people living in downtown buildings? Will it bring any more foot traffic and customers to the downtown? Will it make it more profitable for businesses to want a storefront along Main Street?
Sileo, a two-term mayor looking for a third, unveiled his plan along the campaign trail when he was questioned about why he turned down another, more proven way of enticing business, creating a temporary tax-free zone. The mayor is pinning his hopes on the state coming through with half the cost through the governor’s plan to revitalize downtown with the city and county each putting up $1.5 million. The county commissioners say they don’t have that kind of money and even if they did they aren’t sure spending it on Uniontown is the best use of county funds. In that case, the mayor said he’s willing for the city to find a $3 million match.
That’s quite a commitment that has yet to be defined. It could turn out the mayor would use property taxes collected now to retire bonds toward the project and dedicate most of the city’s annual block grant. To do this would exclude other pressing needs citywide.
Uniontown certainly needs to invest in the downtown. It needs to reactivate its plans to continue replacing infrastructure and sidewalks. It needs to be forceful in dealing with absentee building owners and with paying more than lip service to code enforcement efforts. It needs to provide prompt services to the downtown and make it pleasant and safe to live and work there.
But it doesn’t need to become entangled in turnkey real estate development. Any projects that the city would propose that would involve major alterations or demolition to any buildings within the National Historic District would be wrapped so tightly in red tape that progress would be stymied. This is not so for the private developer who isn’t forced to untie bureaucratic knots.
There is still an alternative for Uniontown that the mayor should reconsider. Gary Gearing owner of the Fayette Building has been attempting to gain approval to be included in a Keystone Opportunity Zone. We have suggested before that the mayor and city council weigh Gearing’s proposal with an eye toward expanding the zone over a couple of city blocks.
A KOZ does make the cost of doing business much cheaper as all local and state taxes are forgiven for the next decade. Sileo said he doesn’t like the idea much because it would cost the city property taxes, and if the buildings took off and attracted residential tenants the city would lose out on potential income taxes.
While the property taxes are real and tangible, the amount is far, far less than the $3 million the mayor proposes spending for possible results. And, at this point the city wouldn’t lose in forgoing income tax on people who don’t exist. Yet the promise is there that after 10 years, if the KOZ works, there will be tax-paying businesses and residents downtown.
There are some who fret, including the mayor, that granting a KOZ for some would alienate existing businesses that will still pay taxes. This is a legitimate concern, however the more businesses that spring up because of KOZ the more customers will be lured downtown to shop and obtain services at all the businesses. Plus, Gearing provided council with letters from 40 businesses that support his plan.
Both Sileo and Gearing are offering plans for the downtown. Sileo’s relies solely on public investment with the possible payoff of private entities joining the mix later on. Gearing’s relies on private enterprise finding new uses for old buildings through an incentive of tax forgiveness.
There might be a third way that mixes public and private investments. Both plans have some ideas worth considering that could complement, rather than compete, with each other. The mayor might want to consider hosting a public meeting to present his plan and listen with an open mind to other ideas. A blend of public works and services coupled with incentives for business start-ups could be the key.