US participates in Economic Development Roundtable
Republican/Herald
02/29/2008
The region’s downtowns have
struggled to reinvent themselves over the last few decades as many
large retail businesses have closed or left for high-traffic malls.
A panel of experts and leaders from Schuylkill County, Hamburg and
the state government shared their thoughts on how these high-visibility
and economically important business districts can continue to evolve.
The following is a transcript of The REPUBLICAN
& Herald’s second Economic Roundtable held Jan. 28 at The
REPUBLICAN & Herald offices. It has been edited for length and
clarity. Biographical information of the participants appears on Page
A9.
Identifying obstacles
PETE BANKO: Why don’t we get started? We have three
questions. What I would like to do, because I know you are all busy,
is to keep your answers to three minutes or less. It’s not a
hard-and-fast rule.
The downtowns in the region, like many commercial districts
in Pennsylvania, have struggled to battle a variety of economic forces
and other issues over the past several decades. What are the major
obstacles in 2008? Bryce, if you can start.
BRYCE MARETZKI: From our perspective at the state level,
what we see is for some of the macro trends — obviously credit,
slowdowns and credit crunches of capital, increasing levels of foreclosure
rates — which can lead to increasing levels of blight and abandoned
housing in downtowns. I think what we see really going forward is
continuing to make strategic investments in our downtowns. We fully
believe played out in our dollars that we put behind that belief is
that our downtowns are the strength of our commonwealth. And that
by looking at the economic revitalization and the community revitalization
and synergizing that work, I think we really see some real hope and
the continuing hope for downtowns moving forward. They are the economic
and cultural engines of our commonwealth, and I think our investments
need to flow from that belief.
We need to continue to look at infrastructure issues,
public safety issues and education issues … all are impacting
our downtowns. I think the immediate needs are what is happening in
the economy, how the economy is looking, will there continue to be
problems related to foreclosure and increasing abandonment of property
and things like that which can have a serious effect on downtowns.
We are also continuing to find companies that want to
locate in downtowns. Not only do we need to make sure we have great,
cool streets and cool bed-and-breakfasts and coffee shops and restaurants,
we also need to find businesses that want to relocate back into downtowns
providing that fertile ground for businesses to see downtowns as just
as competitive as moving into a greenfield site. We will continue
to find companies that want to make those downtown investments and
put dollars on the table for them to do that and job creation.
DEENA KERSHNER:
I believe the biggest obstacle will be the economic
conditions that we’re facing in the coming year. I already see
it in our small downtown, at the end of 2007, was not very good for
a lot of the small merchants.
With the gas prices over $3 a gallon, the consumers
don’t have the extra money that they would be spending in the
unique shops. They’re supporting more of the big box stores,
like the Wal-Marts and in Hamburg, that’s one of our big obstacles
will be struggling to match the competition that’s sprouting
up in the Cabela’s area around us. I believe there is going to
be a big box store in that area and Hamburg’s quite concerned
about that. Also with the vacant buildings in the downtown, we have
a couple vacant buildings and four businesses that have closed at
the end of 2007. Two of those businesses were very well-established
mom-and-pop stores that had been opened for many, many years and for
multi-generations. It’s very sad when you lose a business, but
when it’s a business that has been in the area for multi-generations,
that’s a sign of the times. That’s our biggest obstacle.
Linda Yulanavage, manager, Tamaqua’s Main Street
program and executive director, Tamaqua Area Chamber of Commerce:
Our biggest obstacle and what I see in a lot of downtowns is the perception,
just as Bryce said, that the downtowns are the economic center of
the community. Our local people and the people within the community
don’t believe that. Without the confidence in the downtown, it’s
sometimes hard to get them to buy into the idea that we’re doing
great work downtown and there is a lot to see if you go downtown,
and with that being said, we need to look more at marketing the idea
of the downtown being the center of the community and the heart of
the community and the economic place in the community.
As Deena was saying about gas prices, we have a Wal-Mart
that just went in above us and we are starting to look to market our
downtown as a place to come and save gas money, because they don’t
have to drive to the big boxes, they can walk downtown and see what’s
available in the downtown. A lot of people in Tamaqua don’t even
know exactly what they can buy downtown because they fled to the outer
areas. So I think that our biggest obstacle is bringing the market
into the community and making them part of that economic development.
We see a lot of people just fleeing, not physically, but our local
people going to the big boxes and I think we really need to convince
them that they don’t need to do that and iy is really to their
benefit to utilize the downtown.
Gary Hess, Schuylkill Haven mayor and owner of Hess
Catering, Schuylkill Haven: I think the biggest obstacle is the economy,
especially with a lot of our businesses being smaller businesses in
the downtown area. We do have a lot of empty spaces also, so when
people are looking to come into the downtown, they don’t want
to come into a ghost town. It’s trying to get those couple of
strong businesses that will hold and be there because others will
follow through that. Another one that I’ve seen especially in
the 30 years that I’ve been in Schuylkill Haven is more continued
local support and trying to support those local businesses. Yeah,
you have those hardware stores or a clothing store, whatever, but
you’re quick to leave town and spend the gas, rather than go
downtown, try to make the people realize that you support those people,
they stay in town, they have a tax business and in turn, makes everything
and the town run efficiently.
Another one is parking issues in the downtown, and it’s
a big one. I think in today’s fast world and you see the shopping
centers getting away from the malls. They want these strip malls that
you can go in, purchase and be done and out. And I think that’s
what the people are looking for. Parking is a big issue of downtowns.
Another issue that I think is a lot in the retail business
is going to be the online shopping. Again the trend, people want to
see it and I think in the future there’s the possibility that
still a lot of people want to see the things and it’s hard to
visualize it online, so those are some of the issues there and again
the big thing in Schuylkill Haven is that a lot of businesses have
left. Schuylkill Haven was a big apparel industry, and with the factories
closing a lot of those factory workers stayed after work and shopped.
Now without those, it’s kind of hard to build that up. Again,
it falls back to the local support. People in the community going
and purchasing items, I guess is the big thing.
Joan Goodman, realtor and certified residential appraiser;
insurance agent, James A. Goodman Insurance Agency, and owner and
manager, Kaier Mansion Bed and Breakfast, Mahanoy City: Probably the
major issues for our downtowns have been the proliferation of the
malls and the major discount stores — Wal-Mart, Lowe’s and
Home Depot. Shoppers seek out convenience, price and variety of selection.
Many higher-income families are moving out of the downtowns to outlying
areas and consequently drive south to do their shopping. It is not
realistic to think that these shoppers will choose a destination with
limited retail selection over a mall with easy parking and a wide
variety of retailers under one roof.
The major obstacles I see not only in 2008, but the
years beyond, are being able to present an attractive setting as possible
to attract and satisfy potential customers. This would involve keeping
the downtowns clean, keeping the buildings attractive, trying to avoid
vacant and rundown properties, and offering services that are needed
by most consumers, banking and businesses, services such as insurance
and real estate offices, accounting and law offices, dental and medical
offices, restaurants and taverns, convenience stores, shoe repair,
lodging, tourist attractions and some specialty services. These types
of services where consumers prefer to deal with people they know for
many years, went to school with and socialize with and trust are the
services that can compete with the informal mall experience.
Banko: Patty, what are the major obstacles that you
see for our downtowns in 2008?
Patrice K. “Patty” Rader, executive director,
Upper Schuykill Downtowns: Just focusing on our six communities in
Upper Schuylkill we have identified as a region, the spas, the blue
jean stores and malls have definitely caused an impact on our downtowns.
Empty store fronts and blighted buildings give the look of decay and
depression, and so one of the biggest and one of the first and most
important items that we are addressing is litter to keep streetscapes
and we feel if that we address that up front through our Tidy Town
programs and things such as that we can improve community involvement
and prove the civic pride again which I think we have accomplished
in some areas.
There is a lot of things we can do with our volunteer
hands and working with our boroughs, but funding of course is a huge
issue in taking care of some of these very serious issues that face
our downtowns. I would like to see additional commitment and support
from our county leaders, and everyone has been absolutely wonderful.
I think for all of our municipalities in Schuylkill County, we have
67 (municipalities), it is going to take a joint effort with everyone
specifically community residents and everyone working hand in hand
to address the issues that we face. We have a lot of obstacles and
certainly it’s not going to be a quick fix.
Tom Palamar, Pottsville City administrator: Obviously,
the economy is an issue. What I see just generally is an overall disinvestment
in our downtowns, and it’s not just on the consumer side, but
also overall neglect over the years from the municipalities themselves
for property owners, business owners, in aging infrastructure and
blight. Over the years, there was a time that everyone held up the
their white surrender flags, and said ‘we’re done, our downtowns
are what they are’ and that can’t be; you can never give
up on your downtowns. You have to continually invest, whether it be
going after state and federal monies to build and sort of plant an
environment or have an environment that business can grow.
I think the problem is the confidence has been lost
in most our downtowns, not just in Pottsville, but you have a whole
region and people have looked away from them and I think our challenge
is in restoring that confidence, battling that disinvestment by making
sure that we are sort of put up or shut up and we have to put up.
It is up to each person to make a commitment. Do we patronize our
downtown shops, do we talk a good game or do we run off to Wal-Mart
every time we need something?
In the city of Pottsville we are realistic about things.
We are not trying to be the downtown we were in 1955 because we will
not be. We can’t compete with Wal-Mart, we can’t compete
with Boscov’s, but we don’t want to. At this point, we’ve
identified that we have things they will never have. We have things
that they could not emulate even if they tried. We need to build on
our strengths, we need to continually invest in our downtowns, we
have to identify our blight and the properties that are falling down.
If we have parking problems, just face them head-on. It is a never-ending
battle. If we continually push that investment issue with our businesses,
with our development groups, our business organizations, you can make
an impact.
In eight years I’ve seen some problems that I wake
and it’s a ‘Groundhog Day,’ problems that never go
away, and I’m sure all of us have those same problems. I have
also seen things that have gone better because you just stayed on
them. You constantly talk about them, you bring them around the table
and we address it. I think we can’t pine for the days gone by,
we have to look forward and move ahead and continue to put money and
also a moral investment to our downtowns and that’s been lacking.
Rose Partridge, owner and operator, The Partridge House
Bed & Breakfast, Pottsville: I just became the president of Pottsville
Business Association, so that affords me an opportunity as a new person
to Schuylkill County. I’ve only been here three years and a lot
of people come to me and say ‘I think you would have a fresh
perspective because you haven’t been here for 35 years.’
What I see is a self-esteem problem and a negative flow of perception,
rather than a positive one. Being a positive person, that’s very
difficult to deal with. So I constantly strive to put that away. Anywhere
I’ve been in Schuylkill County, people always remark that downtowns
are dead. I find that extremely heartbreaking and I don’t believe
a word of it and nor will I ever because I believe in people and that’s
really the first resource that we all have is to reside our downtowns
who lives there, who works there, who cares about them. There’re
lots and lots of people in Schuylkill County. We have to find them
and we have to seek them out. We have to be persistent with their
ideas and their brainstorming, what we perceive to be the problems
and the more we have, the better. A lot of people are shy and they
won’t step forward. They don’t think they can make a difference,
but they can.
We go to meetings and we’re not allowed to talk
about the ‘P’ word — parking. Everywhere you go, that’s
what they talk about. And that’s OK because they feel that’s
their business. Someone told me we couldn’t put parking meters
here because of business owners and employees parking in front of
the store. Well, guess what? They still are. The perception of the
parking meter is that the government wants more money. Well, the government
does always generally want more money. That’s the nature of government.
How they use that money, however, it’s really up to those of
us who pay it. We are the ones they are going to be accounting for
the funds that they spend to help us bring in new businesses.
What are we doing to encourage entrepreneurship in Schuylkill
County? As an educational function here, they tell you the YES (Your
Employability Skills) program is wonderful. And they will teach our
young people how to work for someone else, someone else’s company,
in someone else’s office. That’s a wonderful thing. But
how did that office get there? And how did that business get there?
What can we do to each community to encourage those people, especially
younger people, coming out of school? What can they do as business
owners or can they even become one? Do they even have a chance? Everyone
claims that our young people leave us and they don’t come back.
What are we offering to come back?
Funding is a big issue. DCED is a big organization.
It really is. Some of the things I’ve seen you do are absolutely
incredible. I get hundreds of e-mails a week, because I own a business,
about how much grant money is available. Who are the people who know
how to get it and where are they? Are they available in the county?
Are there more than we know about? Do we need to bring some here?
Do we need to teach people how to do it? Because, according to what
I read, there is a lot of money out there for these programs. I worked
40 years in sales; a satisfied customer is going to return. And that’s
what I do everyday and my clients return all the time. If we have
stores downtown and they’re not happy with where they have to
park or what the stores look like or how overpriced they are or what
they’re selling, they’re not going to come back. If we want
to bring stores downtown, then you have to give the customer what
they need. You need to find out what they need and you need to provide
it in a cost-effective manner. The economists I read every day say
a recession’s coming and we need to get prepared before it gets
here.
I don’t know about other downtowns, but here, we
have a business privilege tax. I don’t think that should be in
place. I think the government has enough money and they didn’t
even tell us about that when we came here, which I found also disturbing.
Not that I wouldn’t have opened a business hadn’t I known
about it, but I certainly would have created this more as an issue
than I had an opportunity to because I wasn’t informed. And the
more taxes there are, the less business will be here. And that’s
just the equation we all have to face and we have to work on.
© The REPUBLICAN & Herald
2008
< Back to News
