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Starting this spring, Danville retailers will get some help in weathering the financial storm rocking the nation. At their March 3 meeting, members of the Town Council unveiled a plan to provide $400,000 in Community Development Agency funds towards economic stimulus in the downtown business district.
The plan, crafted by Economic Development Director Jill Bergman and Transportation Director Tai Williams, would help businesses using a multi-tiered approach.
Williams said staff had studied the situation with many downtown businesses and determined that the initiatives introduced in the stimulus package would focus on three initiatives.
• Retail Retention – helping existing businesses with marketing and promotion efforts.
• Retail Expansion – bring further retail into the downtown area through permit processing assistance and fee waivers.
• Modified Zoning – temporary relaxation of zoning requirements related to promotional signage and outdoor seating as a means of generating outdoor traffic to retailers.
The plan would require the transfer of $400,000 of CDA funds to the General Fund to pay for the intiatives. The CDA is a separate agency created to provide funding for projects in the redevelopment district.
The fund develops as assessed valuations go up on properties within the redevelopment area. That incremental increase goes into CDA coffers.
More than two dozen area retailers attended the meeting to give their feedback on the new stimulus plan. First to speak to the council was Danville Area Chamber of Commerce CEO Melony Newman. Newman congratulated the council on its forward thinking and promised the full support of the Chamber.
“It’s timely, it’s warranted, it’s needed, and I see it as being such a positive step,” she said.
The majority of the business owners were very supportive of the plan and appreciative of the effort by the council. Some had concerns about how far the plan will go.
Blair Barry of Barry and Volkman architects said that a $1,000 grant for a façade improvement consultation does not provide enough funding for any meaningful architectural design work.
Other questions had to do with which businesses would be eligible for some of the stimulus initiatives.
After more than an hour of testimony, council members discussed the plan. Councilman Mike Shimansky said the plan was a good first step. Shimansky said he agreed with much of the plan but felt that there were some problems, such as spending money on consultants for “brand imaging.” He suggested postponing the vote on the stimulus package in order to consult with other businesses in town and get their feedback.
Councilman Mike Doyle disagreed. “I don’t believe we should put this off another moment. We’ve already talked about this three times. Town staff has been working on this for months,” he said.
Doyle added that he believes the town should get the stimulus plan into the field as soon as possible in order to send the message to the business owners that the council shares their concerns.
The stimulus plan was moved with several caveats: Businesses should be allowed to utilize the initiatives available for both new and existing retail; the money allotted for the façade improvement designs should be increased to $1,500; and the number of businesses that will be helped in the initial implementation of the plan was increased from 10 to 25.
There was some discussion about increasing the design funding, as that would increase the cost of the plan from $200,000 to $392,500. Mayor Newell Arnerich explained that the town retained almost $500,000 in unattached Community Development Funds, so the increase would not result in any general fund monies being used to cover the cost of the program.
Arnerich added that the unattached funds for Community Development were budgeted at $500,000 this year and $500,000 next year so there should be funding available to keep the stimulus plan going for the next year.
Council members approved the plan unanimously. Staff members were directed to make the requested changes. Once those are completed, businesses will be able to apply for one of the grants starting in early April.
Unless it’s Costco, businesses will find it tough to prosper in Danville.
There are too many retail shops in Danville already. Some will fold no matter what you do. People are not going to spend in Danville as they did in the past. They will be going to big box retailers and will see that the same items cost 25% less. I believe in supporting local bussiness, but not at my expense. If they are hurting today, they will not be around in 10 to 14 months till this turns around.
I don’t get it. If I have an extra $400,000 lying around, I’d use it to pay down my debt, improve my property or save it.
So the Town of Danville has accumulated an extra $400,000 and wants to give it away to local retailers. Naturally, every retailer is for it, especially the consultants (like architects)!
If the Town of Danville has charged its local residents too much in taxes, why not refund it to us?
As far as local retailers, they have a tough time now … but so does everyone else. We shop in Danville but we also shop for quality AND value … if that means Costco, Target or Amazon.com, so be it.
It seems like the Alamo “No on Prop A” voters were pretty smart …
In six months, The Danville Weekly needs to prepare a summary and analysis of the disposition of these funds (who got what) and what measureable impact resulted.
Socialism comes to Danville!
Folks,
I feel my story may have not been clear enough in explaining where these funds are coming from and for that I apologize.
The monies being used for the stimulus package come from the Town’s Community Development Agency. That is a separate entity that was formed to create a separate fund to be used for projects to improve the redevelopment area by improving locations.
The way the fund increases is when property tax valuations go up within the redevelopment district, that incremental increase goes into the CDA funds.
Those funds have to be used for redevelopment in the town. Facade improvements and design plans do fall under that purview.
No General or Capital Fund monies are being used in the plan.
I will be amending our online version to try to make this clearer.
Thank you.
Geoff Gillette
Oh, now we understand.
The money comes from Accounting “Smoke & Mirrors.”
The funds still come from the taxpayers no matter what FUND it may come from.
Welcome to Danville’s version of “The Shell Game” played with taxpayer’s money.
If a business wants to “… improve its facade …” let them do it. Why do taxpayer’s have to contribute to their profit and viability?
Those in Alamo that voted NO this week, I am beginning to admire them more and more. This is the LOCAL CONTROL of our taxes they were concerned about.
WAKE UP!
This is exciting news. I’ve been trying to some time to open my sports-oriented service business in the downtown area. I’m a bit more hopeful that a new state of flexibility in government may provide some hope of me obtaining permits and variances…
Stay tuned…