Will downtown State College keep key events, programs in 2022? Property owners could decide
Imagine fewer dedicated cleaning crews in downtown State College. Or maybe no more traditional events like “First Friday” or “Light Up Downtown.” Or less help for businesses, such as grant guidance or initiatives like the gift card program.
Depending on how downtown property owners respond to an impending reauthorization plan, one whose results will be known by mid-December, that’s the future that could await the borough.
The Downtown State College Improvement District (DSCID), a nonprofit established in 2002 and charged with enhancing the downtown, is tasked with many of those responsibilities. As part of a 2000 state law, the downtown property owners who fund the nonprofit can elect every few years to continue or end it — and a vote of sorts, which runs through 5 p.m. Dec. 13, will determine whether that’s the case this year.
“Without the continuance of this organization, there will be no way for our downtown to support the businesses, university or community,” added Katie Dawes, who’s owned Kitchen Kaboodle (104 W. Beaver Ave.) for 35 years.
Only about 500 property owners within the downtown district are eligible to “vote” since they own parcels there, meaning business owners who rent are not eligible to weigh in. Those eligible have two choices after receiving a packet of information through the mail: Either take no action, or file an objection. If 40% of owners there object, the organization will not be renewed. If fewer than that object, the DSCID will continue through 2026 — pending council’s expected OK — when a similar “vote” will then take place.
During an Oct. 29 council meeting that offered public discussion on the reauthorization plan, 17 people spoke up with the overwhelming majority in favor. Two property owners voiced serious concerns over the nonprofit but still added, independently, that they support it. The other 15 were effusive in their praise.
“Without the support of the Downtown Improvement District, I do not think we would be as successful as we’ve been so far,” said Erica Quinn, executive director of 3 Dots Downtown, an arts and innovation space at 137 E. Beaver Ave.
Still, despite the significant public support, concerns remain about the DSCID’s future, especially considering the last such “vote” took place in 2006. Will owners located outside of the county or state, away from witnessing DSCID’s impact first-hand, object to the organization? What about new condo owners who don’t appreciate paying a yearly “assessment,” which detractors say basically acts as an additional tax? Or others who like the idea of a DSCID but simply believe it’s not worth the money?
Gary Brandeis — owner and developer for Fraser Centre, Hyatt Place and the Scholar Hotel Group — said he is required to pay about $40,000 annually to keep the DSCID going. Those payments, or property assessments, are calculated based on millage rates. And those assessments fund more than 70% of DSCID’s proposed 2022 budget of $622,000, with other funds coming from the borough, university and other sources.
“This is a big investment for our company and the community,” Brandeis said, adding he remains supportive of the organization. “And I believe we should get a lot more out of the DID.”
One condo owner said he believed the DSCID’s board should have residents represented, otherwise it’s “taxation without representation.” But business owner and board member Sharon Herlocher, who contributes more than $20,000 annually, said such a position already exists.
The problem with the DSCID, some say, is that not many outside of the business community fully understand the organization’s work. Because it does not overtly tout its involvement in many events and programs, few appreciate why local business owners praise its impact. Residents would notice if events like the Downtown Pumpkin Pursuit, the summer concert series or the holiday trolley suddenly stopped — but did they know DSCID hosted them to begin with? Visitors might enjoy free holiday parking or the gift card program — but are they aware of the DSCID’s involvement?
According to DSCID officials, the nonprofit helped 92 downtown businesses collect about $1.8 million from the Paycheck Protection Program during the pandemic. The organization also distributed about $30,000 worth of personal-protective equipment and has helped out with mask-messaging in the downtown.
Newly elected State College mayor Ezra Nanes, who will take office in January, voiced his support for the DSCID last month. He said he’s spoken to hundreds, if not thousands, in the borough and asked them all one question: What matters most to you? Without fail, he said, the downtown has come up as the answer most often.
“People care about the downtown of State College. It really matters,” Nanes said. “And, as someone who lives here, I really value this downtown. And I think that the work of the Downtown Improvement District is immeasurable in its importance.”
If enough property owners object, it’s not known what might happen next. The DSCID could end altogether. Or it could exist in some lesser fashion, maybe demoted to a Main Street program — which is mostly used by smaller towns and where funding is limited to how much the organization can raise from sponsors. In that case, programs and events would drastically decrease.
If the DSCID is not reauthorized, the borough acknowledged in an email it would likely not be able to host events the DSCID has developed. That means the possibility of no more First Friday or Live After Five. (Arts Fest and First Night are both run by the Central Pennsylvania Festival of the Art and would continue, however.)
Borough manager Tom Fountaine said preliminary data on the number of filed objections might not be available until after Thanksgiving. Until then — and, more importantly, until Dec. 13 — residents, owners and visitors alike must wait.
The borough council will then essentially formalize owners’ collective decision during a Dec. 20 council meeting. But council cannot legally overrule owners’ wishes if at least 40% object.
“I don’t think you’ll find anybody who’ll argue against the DID here on council,” Councilwoman Katherine Yeaple said during a meeting last month. “We all see the benefits of it.”
DSCID executive director Lee Ann Jeffries seemed to embrace that sentiment.
“We really want to continue to do the good work that we do,” she told the CDT.
