Funding the Morgan Hill Downtown Association is not going quite
as planned but, gauging by the organization
’s appearance before the City Council Wednesday, the gap is more
than filled by enthusiasm.
Funding the Morgan Hill Downtown Association is not going quite as planned but, gauging by the organization’s appearance before the City Council Wednesday, the gap is more than filled by enthusiasm.
President Lesley Miles took the council through the group’s active past year and its value to the city.
“Downtown is the heart of our city,” Miles said. “It keeps the community’s heart thriving.”
She pointed out that the city’s $180,000 investment was leveraged into an $8 million investment by property owners in the downtown.
“That is an almost 400 percent return,” Miles said, “not including sales taxes generated by successful downtown stores.”
Then she asked council for $27,500 more to get MHDA through next year.
Originally council voted to fund MHDA in its endeavor to bring back the Main Street program, to the tune of $250,000 over three years. Year two is ending July 1. Miles requested a four-year funding cycle, with a total of $359,500 to cover 2004/05 through 2007/08 during which time MHDA would earn $70,500 to help their budget.
The $27,500 is to cover the salary of Executive Director Dan Craig, without whom, Miles said, the association could falter just when growth is about to take off and firm direction is needed.
Councilman Steve Tate said he had no objection to the extra money, at least the $27,500, but he wanted to see the association’s plan for self-sufficient funding, promised two years ago.
“We don’t have a lot of money,” Tate said, “especially with trying to find funding for the library. We need to see a plan.”
Councilman Greg Sellers backed Miles up. He is a long an advocate for downtown and a former head of the Downtown Revitalization Committee, MHDA’s predecessor.
“Self-sufficiency was originally depending on a property and business owners’ improvement district (PBID) and would have provided self-sufficiency,” Sellers said.
After discussing Palo Alto’s PBID and comparing its resources with Morgan Hill’s, it was determined that it would not work to support MHDA. Laws controlling PBIDs have changed too, further restricting the possibilities.
“I want to fund next year and think about how to commit in the long term,” Sellers said.
Garrett Toy, director of the city Business Assistance and Housing Services which includes administration of Redevelopment Agency funds, said MHDA funding comes from the RDA’s economic development funds.
“We have budgeted the $70,000 for next year,” Toy said, “but I don’t know about future years.”
Economic development has $4 million remaining and doesn’t include programs for the next fiscal year.
“Without that we would have $2.5 million,” Toy said.
Miles fired up her PowerPoint presentation to take the council through changes in the downtown. She mentioned Shelley Hanes’ new Art Guild, the Vintage Pear where tea is served most afternoons, Stacey Marr’s Art Scene, façade and/or paint improvements at M&H Tavern and Quin’s Deli. Moving north, The Love Bug opened next to BookSmart (it’s cards, flowers and gifts) and shops are opening up on side streets.
She mentioned that South Valley Bikes is buying its building (West Second at Monterey Road) and Michi’s Floral is moving into the space between the tavern and Thinker Toys, replacing a Realtor, which is not a sales tax-generating business. Merchants prefer wall-to-wall retail and restaurants for a shopping area to be successful.
Talking about progress with vacant lots and empty buildings made Miles even happier as she told council that Gayle Richter, who owns many downtown buildings and land, was considering looking at filling up a vacant lot or two.
The building just north of Rosy’s at the Beach has been bought and plans to turn it into a sports bar are moving ahead. Finally, Miles told of Manou Mobedshahi’s plans for the Downtown Mall and the Granada Theater and Ron Humphrey’s plans for Jumpin’ Juice and Java, opening in July just south of the old Methodist Church and hoping to attract students from the Gavilan campus at the Community Center and Britton Middle School.
“We are advocates for business owners,” Miles said. “We promote ideas and we resolve issues – and we are increasing our membership all the time.”
Miles was followed by Rosy Bergin and Stacey Marr, both of whom waxed poetic about the association. They were followed by Julie Goodpasture, a Live Oak student who stayed after students were released from their civic attendance duties.
“I would be really great if you would help with funding,” Goodpasture said. “Morgan Hill is spreading out and people tend to forget what the heart of the city is. If you work on it, it will be good. Don’t forget about the downtown.”
Councilman Larry Carr was reasonably positive about additional funding.
“I want to see MHDA continue to thrive and grow in a city partnership,” said Carr.
“However, we should not spend additional RDA dollars until we figure out how to fund the library. The library, indoor recreation center and MHDA are not either/or projects,” he said. “We must find ways to fund them all.”
Tate continued to maintain the need for a self-sufficiency plan.
“I don’t see us holding their feet to the fire to have plan for self-sufficiency,” Tate said. “What is their long term commitment?”
But then he relented.
“If it takes a permanent subsidy, that’s okay; I just want to know that,” Tate said.
The funding request for Morgan Hill’s Downtown Association will return at a later council meeting where it will be approved or not.
Mayor Dennis Kennedy said the MHDA deserves a special effort.
“The downtown does more for Morgan Hill (’s image) than the big box retailers,” he said. “Let’s put a place holder for RDA money and come up with a plan – and return with a schedule for a plan.”
Carol Holzgrafe covers City Hall for The Times. She can be reached by e-mail at ch********@*************es.com or phoning (408) 779-4106 Ext. 201.
