 |
By Kate Perry--
January 18, 2004
TROY-
Inside State of Grace on Second Street there is a distinct
boutique feel.
The racks are stocked with stylish sweaters, dresses
and other expertly displayed women's things in every
color of the spectrum. Handmade jewelry, bags and dishes
fill the shelves and cases. Every item radiates quality.
They're the kind of things women buy for themselves
only as well-deserved treats or as gifts.
Grace Liney's store has been here for about a year,
and it is one of a few in the downtown area proving
that new retailers, even those selling the finer things,
can survive in the city.
The Troy Downtown Collaborative, a group of business
and commercial property owners, are in the midst of
a plan, the formation of a Business Improvement District
to attract more stores like Liney's and to better conditions
for those who already make there living here.
The ultimate goal: Filling those businesses and buildings
with interested shoppers and renters.
BIDs, which are catching on more in cities of all sizes
across the country, collect an additional tax from property
owners - TDC proposes 5 percent of the city's tax assessment
- in a designated area and use that money to beautify,
promote and improve security.
When a BID is proposed, a 30-day public comment period
is held, followed by a public hearing and then some
form of voting by property owners determines whether
or not the district is approved.
If enough voters support it, all property owners, regardless
of their vote pay into the program.
Bob Anderson, a member of TDC who is one of a group
spearheading the effort for the BID, said the next step
for Troy's BID is a public hearing sponsored by the
City Council.
As is the case for all projects, there will likely be
some naysayers at the hearing. Critics of BIDs say the
boards running them have little accountability to those
paying into the program. Others say the overhead costs
accumulated by running the organization eat up so much
money, there is little left for hanging plants, street
cleaners or advertisements.
The added tax is also hard for some to stomach, especially
in Troy.
Ken Dufty, owner of Wachina Co. Antiques & Collectibles
on River Street, said he has no problem donating money
to improve the business district, but thinks increasing
taxes by 5 percent is a horrible way to recruit new
business to downtown.
"The BID basically represents another layer of taxation
in a city that is clearly deadened with the weight of
taxes already," he said.
Anderson reported that the median contribution for the
300-some property owners within the BID boundaries would
be reasonable, about $100 annually. He also reasoned
that even those like Dufty, who wouldn't vote for the
BID, would still benefit from the cleaner, safer streets
and advertising.
Dufty has read about BIDs in other areas and claims
that the results were perilous. He is also of the school
of thought that the BID board could become a good ole'
boys club with little access available to the average
business owner.
John Hedley, car salesman turned developer and a TDC
member, said anyone who wants to get involved in the
BID is welcome to join the effort.
"Call us, come down and join us," he said.
Anderson also said that a District Management Association,
which would be composed of property owners and tenants
within the BID, would govern the BID. In terms of overhead,
Anderson said there are no concrete plans for how many
people the BID will actually employ but that the TDC
has been conscious of that issue during planning.
"We have strived to keep that item to a minimum, and
I think we have," he said, mentioning that they hope
to only employ an administrative assistant for clerical
duties, which could be supplemented by other part-time
hires but reiterated that nothing is definite.
Joe Cunin, director of the Lark Street BID in Albany,
said that overhead costs are a constant struggle in
his organization. Even with a minimal three-person staff
that includes him, an office manager and a part-time
maintenance man, costs add up when running the office
is added in.
"When you start incurring these fixed costs, like keeping
the lights on in the office and the heat and bookkeeping,
sometimes what you have left to put on the street isn't
very much," he said.
While it is easier to give a smaller BID like Lark Street
an identity, he said raising capital is something that
the big guys are better at.
The Troy BID will be twice the size of the Lark Street
BID, but estimates Anderson provided say that $72,000
would be collected annually from property owners, which
is only 12,000 more than collected by Cunin's BID. However,
a report provided by Anderson also mentions that tax
collection, which will be administered by the city,
will account for only 23 percent of the BID's revenue.
Anderson said that the Troy Redevelopment Fund, the
Rensselaer County Industrial Development Agency, and
corporate support, among other things, will also supplement
the tax revenue, creating annual budgets that hover
at $265,000.
The Troy BID also has much more commercial space than
Lark Street, making it more similar to the Downtown
Albany BID, which has boasted much progress in business
growth and an enhanced appearance since its beginning
in 1996.
For Anderson, that BID's success could make a believer
out of anyone.
"All one really needs to do is look at the Downtown
Albany BID," he said. "Anyone who goes down to Capital
Rep (theater) or to the restaurants or bars down there
will see that it's a delightful experience."
Still there are issues like residential housing that
Lark and Troy have in common that could be problematic
on this side of the river.
Matt Baumgartner, owner of Bombers, said that having
to compete with residents within the BID has sometimesmade
it hard to improve his business. At times he has wanted
to extend his hours or add live music to his restaurant/bar,
but has met resistance from BID officials who show up
at city zoning hearings to defend the residents who
aren't keen on his ideas.
"I think the BID should be speaking for the businesses
and not the residents," he said. "It seems like it is
trying to cover too many bases, I think it should stick
to the businesses."
Because all property owners must pay into the BID, including
those who only own apartments or homes, the BID is hard
pressed to turn them away.
There are also other issues even a BID as successful
and moneyed as the Downtown Albany BID - multi-million
dollar buildings line North Pearl and State streets
as well as Broadway - has difficulty fixing.
To combat a parking problem a few years ago, parking
meters were installed along its streets, but during
the day, it can still be hard to find a spot there even
if you are willing to pay more money to park in a lot.
Cunin said, on Lark Street, some have the attitude that
because they are paying in, the BID should remedy all
the problems in the area be them crime sprees, parking,
or keeping businesses up and running.
There is nary an empty storefront in the Lark Street
BID now, but Cunin said sometimes the latter of those
complaints can be especially difficulty to manage.
"We can do everything we can to make sure that Lark
is clean and nice and well advertised, but, like it
or not, the market will determine what businesses will
thrive down here," he said.
On Lark, Cunin said the small size of the shops makes
it hard for some businesses to thrive because they can't
carry a variety of merchandise, in Troy it may be the
taxes that kill businesses and there is little that
a BID can do about that.
In Troy, some merchants say they have heard so little
about the BID that it is hard to say what they expect
from it.
Tom and Ray Clement, co-owners of Clement Frame and
Art Shop on the corner of Broadway and Second Street,
have a unique perspective because their other store
in Albany is in the Central Avenue BID. While they said
it is far from a solution to every problem they have
had in the area, it is better than nothing.
The pair said they knew very little about the BID proposed
for Troy, a sentiment expressed by another merchant
as well and said they would have to know more before
backing the BID completely. With that said, they agreed
it could be a positive thing for Troy in some respects.
"You throw garbage where garbage is, maybe this could
stop some of that," Ray said.
In the minds behind the BID, the district also seems
to be less of an answer for everything and more a step
in the right direction.
Hedley said he thinks that it is a very necessary step
in order to keep the city's momentum going in the right
direction.
"Everything is on the upswing," he said. "We have an
opportunity with all the new development downtown, the
extension of the Antique District, Little Italy, and
the uplift of Washington Park, all of these things are
starting to come together."
|
|
