The city’s willingness to help struggling shopping centers is a
good idea. After years of courting downtown merchants and enticing
retailers to open at the new Cochrane Commons, the city has turned
its attention toward some of the older, more established – yet
struggling, nonetheless
– centers along the city’s main east/west thoroughfares. The
Morgan Hill City Council recently approved a shopping center
strategy that, among other things, will consider funding new signs
or parking lot improvements, loaning money to businesses for tenant
improvements and facade upgrades and redu
cing city fees for struggling centers including Cochrane Plaza
and Vineyard Town Center.
1. Willingness to help is a good idea
The city’s willingness to help struggling shopping centers is a good idea. After years of courting downtown merchants and enticing retailers to open at the new Cochrane Commons, the city has turned its attention toward some of the older, more established – yet struggling, nonetheless – centers along the city’s main east/west thoroughfares. The Morgan Hill City Council recently approved a shopping center strategy that, among other things, will consider funding new signs or parking lot improvements, loaning money to businesses for tenant improvements and facade upgrades and reducing city fees for struggling centers including Cochrane Plaza and Vineyard Town Center.
Many of these programs have been available to businesses in the downtown area, roughly Butterfield Boulevard to Del Monte Avenue and Dunne to Main avenues.
2. Looking to increase sales tax revenue
From the end of 2008 to the beginning of 2009, Morgan Hill saw a mass exodus of sorts, with the loss of Circuit City and Mervyns to bankruptcy and the closure of Ross and dd’s Discounts and Courtesy Chevrolet. The collective blow to the city’s sales tax coffers for the last fiscal year, which ended June 30, is estimated to be about $538,450, a 7.8 percent drop from the year before, according to Finance Director Kevin Riper. The city projects sales tax for the current fiscal year is expected to be half a percent, or $25,000, less than last year’s, Riper said.
3. It’s a fair approach
Now, in order to increase revenue, the city is considering financial assistance for the shopping centers. And, it’s not a one-size-fits-all approach, Business Assistance and Housing Services Director Garrett Toy said. But it is fair.
“Each (of the) centers have different needs. Some may not need anything. Others may need some help,” he said. In addition to the established “shopping centers” the city should look at other established employers in town whose business is struggling due to the economy.
The city has a vested interest in helping all businesses. A thriving downtown creates a buzz in town and in the surrounding populations, which helps city coffers. Thriving shopping centers look better than those with vacant store fronts, and help city coffers, too.
