Sylva, SPIR boards explore creation of downtown tax district

By Lynn Hotaling

Members of Sylva's town board met with board members of Sylva Partners in Renewal to hear a presentation by community development planner Geoffrey Willet of the N.C. Department of Commerce.

North Carolina's General Assembly grants towns authority to create special tax districts, called Municipal Service Districts, for a variety of reasons, Willet said, but the statute reads as if it were written especially for downtowns in that it mentions downtown revitalization and promoting business investment.

Sylva is one of the few towns participating in the state's Main Street Program that has not already formed an MSD to generate additional revenue, Willet said. Tax rates for MSDs in other Main Street towns range from 9 cents to 33 cents per $100 valuation, he said. Currently, SPIR is funded entirely by the town of Sylva and Jackson County.

Initially such districts are not met with enthusiasm, Willet said, but he's found that when businesses contribute something, they feel more ownership for downtown projects, which leads to greater participation.

SPIR President Jay Spiro said he and SPIR Director Richard McHargue have spoken with Waynesville's town manager on the subject of MSDs. Waynesville's tax district was created at the same time its downtown association was formed. The town is considering annexing additional property into its MSD at the request of adjoining property owners who have requested to be included, Spiro said.

"That's an example of people wanting services," Spiro said.

Preliminary figures indicate that if Sylva created an MSD and used a tax rate of 10 cents per $100 valuation, the town could raise an additional $30,000 for SPIR, McHargue said. If the rate were 10 cents, the owner of a building valued at $100,000 would pay an additional $100 per year in taxes.

McHargue based his estimates on a district that would include all commercial property on Main and Mill streets between the courthouse and The Coffee Shop.

Concern was expressed that the increase might be passed along to shop owners in the form of rent increases, but downtown insurance company owner Phyllis Foxx said that shouldn't be a problem.

"That way everyone would share in the cost," she said. "It's an investment by the business person in the town's future. It's not that we advocate taxes - it's an investment just like a new piece of equipment."

"The number one complaint is that business owners will pass it on," Spiro said. "But it's hard to see how anyone could complain about $10 to $12 per month."

"Taxing the business district differently definitely makes sense, but taxes have gone up so much it might not be very well received," said Sylva board member Maurice Moody.

The intent of Monday's session was not to arrive at a decision but to provide information, Spiro said.

"It's important to have discussions with individuals to obtain their support," Willet said. "Getting good information out on the street is important."

Turning to other matters, Spiro thanked town officials for their additional maintenance and cleanup efforts on Main Street.

"I've seen a real improvement and gotten a lot of compliments," he said.

Spiro presented a proposal from local landscaper Randy Cabe for the town board's consideration. Cabe, who is already under contract to maintain Main Street plantings, has offered to broaden the scope of that agreement. Currently Cabe is paid $300 per month by the town. For an additional $200 per month, Cabe would add cleanup duties including blowing off the sidewalks twice a week.

Moody asked who would supervise Cabe's work, and McHargue indicated he could do so. Sylva Mayor Brenda Oliver said the town board would take the matter under advisement.

The final topic Monday was the status of proposed improvements to Mill Street. Linda Gillman, chairman of SPIR's design committee, said her group is developing a request for proposals from architects.

SPIR's intent, said Spiro, is to pay the architect from its streetscape fund. That way plans for Mill Street will be ready once funding is secured, he said.

If all goes well, SPIR hopes to start work on Mill Street in the spring of 2002, Spiro said.

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