As discussed in prior musings, the conversation around a potential commercial vacancy initiative is still underway with the code committee discussing the scope and breadth of such an ordinance and how Lansdale could benefit from one if implemented or how it might detract from commercial development. Much of this conversation centers on the question of what is the “right” way to encourage commercial renting to businesses in our empty locations (of which there are many). Is it through government investment and aide? Is it through punitive measures on commercial landowners who leave buildings vacant for extended period of times? Or is it some combination of these ideas?
I have always firmly believed that some combination of investment in a positive business environment and reasonable vacancy rules is the right combination to encourage further development on our Main Street. One option that checks all these boxes is the creation of an Enterprise Zone on Main Street rather than a blanket commercial vacancy ordinance.
Enterprise Zones are a geographic area that has been granted special tax breaks, regulatory exemptions, or other public assistance to encourage private economic development and job creation. They are used most often to promote the revitalization of a city neighborhood. Specifically, and uniquely, incentives may be customized to entice a particular industry sector if desired. For example, Bucks County Redevelopment Authority operates a robust Enterprise Zone that encourages development and rehabilitation of eight separate municipalities.
The creation of an enterprise zone on Main Street would be a more surgical way of addressing the commercial needs of the borough. In a hypothetical Main Street Enterprise Zone, we could create tax incentives for commercial landowners who bring in businesses that are within desirable industries like restaurants, breweries, entertainment, or retail sectors. Additionally, the rules of these incentives could require that the business be in operation for a year or more before any benefits are seen by the commercial landowner.
This approach incentivizes the development of what we know drives a successful downtown environment. One where people are active and engaged in multiple activities that allow them to have several hours of enjoyment that does not require too much planning and is easily accessible.
That being said, let’s consider exactly what this means and what it does not mean. In the above example commercial landowners on Main Street who find a qualifying business would receive financial incentives to keep that business in place and successful in Lansdale. However, what it does not do is address the existence of long-term commercial vacancies in that same geographical area. We can create the best business environment in the world, but unless there are active and engaged commercial landowners who are willing to help us get those specific types of industries on our Main Street it doesn’t matter one bit.
With an Enterprise Zone we can create a targeted incentive for commercial sectors that we want on Main Street while simultaneously creating a targeted disincentives for leaving buildings vacant for an extended period on one of our most important commercial streets. We can approach this problem from both sides of the coin. We know that offering substantial tax, and potentially other, incentives will help bring more business onto our Main Street. However, to help fund initiatives like that we must also create rules that make it clear that leaving buildings vacant for extended periods of time is a blight on our community and financial disincentives must exist for that as well.
There are many details to work out before any of this is implemented. However, it is encouraging that so many are willing to come together and discuss how we can approach this challenge anew. Lansdale has tons of opportunity to become the community we all want it to be. It will require change and innovative thinking to get there. Lansdale is ready to meet this moment and I know we can continue to build a better community if we keep moving forward together.
(Mayoral Musings is a weekly op-ed column submitted to North Penn Now, courtesy of Lansdale Borough Mayor Garry Herbert.)
See also:
Mayoral Musings: Block Parties In Lansdale
Mayoral Musings: Pride Month 2022
Mayoral Musings: Memorial Day 2022
Mayoral Musings: Vacancy Ordinance Discussion
Mayoral Musings: Lansdale’s Dr. Frank Boston Memorialized
