Community Revitalization Desktop Guide

mobilized to offer assistance. The diverse aspects of this redevelopment plan, including transportation, housing, and recreational and commercial uses, as well as the intent of the Borough to target its redevelopment efforts, made this a perfect opportunity for CAT involvement. Borough improves area surrounding Security Trust Building The Borough decided to focus ﬁrst on the Security Trust building because it was located in the heart of downtown. Developers had purchased the former bank building for redevelopment years ago and had not taken any action to invest in the site. The Borough decided to buy back the building so that they would have local control. Next the Borough decided to ﬁx up the immediate area surrounding the building to increase its attractiveness to investors. After the immediate area was reclaimed, the town planned to list the Security Trust building with a realtor who specializes in developable sites and see if they could attract some interest. In order to attract investment, the group decided that several investments must be made in the area around the Security Trust building. First, the land adjacent to the building on High Street had sat vacant since 1973 when a failed urban renewal plan called for razing six stores, a gas station and the Shuler House Hotel. The Borough decided to build a new Borough Hall and park on the land. The effort would be initially ﬁnanced through a $5 million County economic development fund. The Borough Hall was completed in 2000 for $4 million. It features a new 28,000-square-foot, three story Borough Hall that accommodates governmental ofﬁces, the police department, and council chambers. The Borough also built a .75-acre park in the lot located between the new Borough Hall and the Security Trust Building. The Smith Family Plaza was funded by the Smith Family as well as state and federal Transportation Enhancement Project monies used to create a pedestrian-friendly environment for transit-oriented development connecting the High Street corridor and a proposed commuter rail line – the Schuylkill Valley Metro. The park includes a formal lawn area for picnicking and relaxing, ample seating and a fountain that is its focal point. Borough attracts private developer to redevelop Security Trust Building Now Pottstown felt it had something to show a developer – a historic property in the middle of a revitalized section of downtown. So the Borough hired a professional real estate agent and talked to the head of the Montgomery County Redevelopment Authority and they began to ask developers to come take a look. One of these developers was John Wolﬁngton, a former employee of Brian O’Neill – a wellknown developer in the region. Wolﬁngton was looking for his ﬁrst big redevelopment project. He visited the site and understood its potential immediately. In the heart of downtown, next to a brand new park and Borough Hall, this building had real possibilities. Wolﬁngton was willing to buy the property from the Borough but he needed public money to make the project work. When he did his ﬁnancial projections based upon Pottstown’s historically low ofﬁce rents, he needed about $1 million in public dollars to make the redevelopment viable. Pottstown ofﬁcials were unsure as to whether they could raise that kind of public money. They had no idea how to go about it but they very much wanted to take advantage of this opportunity so they called Larry Segal and Jerry Nugent, the Chair of the Montgomery County RDA, and asked for their help. For the ﬁrst time, the State, County and Borough created an effective partnership, mending fences that stood in their way. The Governor’s CAT team agreed to work with the developer and the Borough to ﬁll in the funding gaps and to make the project work. The state provided two $250,000 grants. The County agreed to contribute $300,000 in federal CDBG funds. CAT also educated the Borough about how they could use tax increment ﬁnancing (TIF) to provide the remainder of the needed funding. As a result, Jim Fairchild, Pottstown’s Economic Development Director said Pottstown was able to put in place the ﬁrst TIF in Montgomery County. Fairchild says “it was fairly easy to convince Borough Council and the School District to agree to dedicate new taxes from the property to ﬁnancing the redevelopment because the property had been vacant for so long and its assessed value of $200,000 was so low.” The Borough agreed to a 75% TIF so that one quarter of the increase in tax revenues would be paid to the Borough and school district. When the project was completed, it was assessed at $2.4 million. The 25% of the increase in taxes that were paid to the Borough and School District were signiﬁcant. The other $350,000400,000 the TIF generated was invested in the project. Finally, the Borough agreed to provide 100 parking spaces in a municipal lot for a low cost lease rate that helped to make the numbers work. Once it penciled out and Wolﬁngton knew he had the ﬁnancing he needed, in November 2003, he bought the property from the Borough and began to invest $2.5 million of his own money in the redevelopment of the Security Trust building. The plan was to redevelop the existing building with an upscale restaurant on the street level and ofﬁces above. There was not a bit of community opposition to the Security Trust deal. Everyone agreed it needed to be redeveloped. In addition, the TriCounty Area Chamber of Commerce agreed to move its ofﬁces into the building and to sign a ten-year lease prior to the building purchase. The Chamber wanted to make a statement about its conﬁdence in Pottstown’s future. The building was completed in 2005. “ The successful redevelopment of the Security Trust Building enlivened community spirit and pride. By ﬁxing up the main intersection, all of downtown looks better. By doing one project that everyone says can never be done – it changed the local perception and raised interest from others outside to see if they missed anything in Pottstown. After the Security Trust Building reopened, Pottstown knew it could be more than just an old steel town.” – JERRY NUGENT, MONTGOMERY COUNTY REDEVELOPMENT AUTHORITY CHAIR In 2006, the upper ﬂoors of the building were fully leased out. The Borough obtained a liquor license for the downstairs level (when it put 59 GOAL FOUR: APPLY STRATEGIES THAT WORK Pottstown

Table of Contents Feed for the Digital Edition of Community Revitalization Desktop Guide

PA Community Revitalization Desktop Guide Table of Contents How To Attract High Impact Investment to Core Communities Goal One: Choose One Asset-Rich Redevelopment Area Interviews with Pennsylvania Mayors Goal Two: Prepare Redevelopment Area for Market Interviews with Developers who Have Invested in Pennsylvania Cities and Towns Goal Three: Welcome Investment Interviews with Developers who Have Invested in Pennsylvania Cities and Towns Goal Four: Apply Strategies That Work Conclusion

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