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BID Events Hurt Shorewood Business

By David Tatarowicz
Friday, Mar 2 2007, 04:44 PM
Shorewood citizens hear quite a bit about the Shorewood BID, but in talking to many residents, I have found that they really don't know exactly what the BID is, how it is funded, or what it does. This is understandable, as the BID Tax does not apply to most Shorewood residents.

In short, the BID district is a Taxing Body, that only taxes Commercial Property owners in Shorewood. If you own a Residential property, you do not pay the BID tax. If you own Commercial property (or mixed used), you pay hundreds or thousands of dollars per year to the BID tax.

The purpose of the BID is purportedly to "help" Shorewood businesses.

In this blog, I have already listed many of the reasons I believe that the BID in Shorewood is not needed, and how it actually hurts Shorewood business. Adding to those reasons is a look at the BID sponsored events for 2007 --- and how they do Nothing for the average Shorewood business --- at best --- and actually Hurt Shorewood Business --- at worst.

One of the big events that BID sponsors is the Shorewood Criterium (bicycle race) that is planned for July 19th. For this event, the race course is closed most of the day with no parking allowed (much of Oakland Avenue). This is obviously bad for the businesses on Oakland, as their customers have nowhere to park. As the race time approaches, traffic is totally closed for an even larger area of Oakland, to facilitate tents and displays, etc.

There are a few businesses which may see a small increase in their business, such as coffee shops --- but by and large, it is a lost business day for most businesses on the race route.

Perhaps if the Criterium brought a lot of folks from other communities to Shorewood, for the novelty of seeing a bike race, there could be some benefit to the exposure. But the Criterium is run virtually everywhere ! There is no need for folks from other communities to come see ours --- they have their own. Except for spectators who may follow the bike circuit (which from my observations couldn't be too large), the race isn't attracting "new" prospective shoppers to Shorewood.

Listed here are the dates of the Criterium in the various nearby communities, surrounding our date in July:

July 9th Menasha
July 10th Manitowoc
July 11th East Troy
July 12th Burlington
July 13th Hales Corners
July 14th Shorewood
July 15th Milwaukee - Schlitz Park
July 16th Waukesha
July 18th Hartford
July 19th Milwaukee - Lakefront
July 20th DePere
July 21st Sheboygan
July 22nd Kenosha
July 23rd Milwaukee - Downer Ave
July 24th Whitefish Bay

Obviously, this is not a unique event which showcases Shorewood.

Another event that BID sponsors is the Art and Craft Fair on the lawn of the Shorewood High School. After last years Art and Craft Fair I did an informal poll of business owners situated nearby the high school, as to whether this event helped their business. To the contrary, they told me that they noticed a drop in business, as folks who might drop in to browse and buy something, where at the Art Fair instead.

Also, the Art Fair was composed primarily of business people from "Outside of Shorewood" --- our BID money was enhancing businesses from other areas, in competition with our Shorewood based businesses !

In all fairness, at least two of the planned events, the Artwalk on April 7th and the Holiday shopwalk on December 1st basically have the right idea of getting actual potential shoppers out in front of the shops.

On the other hand, the small business group that we had before the BID, sponsored the same kind of events, for an annual dues cost of about $70 --- while the BID is spending tens of thousands of dollars to achieve the same result. And although every commercial property is paying the BID tax, these walks are focused on North Oakland and East Capitol --- so the businesses in other areas are paying in --- but getting nothing out.

I believe it is time to do some serious reconsideration of the entire BID. We don't need an additional tax on business in Shorewood --- especially with ill-conceived events that do more to hurt, than they do to help, the very businesses paying the BID Tax.



 

Shorewood to Lend Tax Money to Businesses

By David Tatarowicz
Thursday, Mar 1 2007, 05:42 PM
(Note to readers: I had posted this earlier in the articles section before my blog was up and running --- but I think it is too important not to include on the blog)

NEED A BUSINESS LOAN --- DON'T ASK A BANK, ASK SHOREWOOD --- WOULD YOU LIKE $25,000 OR MAY $50,000 ?

Under a new loan program approved by the Village Board, WE --- the taxpayers of Shorewood --- will make loans of between $25,000 and $50,000 to both existing and new Shorewood businesses.

The loans can be used for almost any reason, including for "working capital". There are no requirements that the loans be secured by collateral, or even by personal guarantee.

Speaking as a Shorewood citizen, property owner, and small business owner, I am very much against this program, for several reasons. First and foremost, when did this need to subsidize Shorewood businesses develop ? Has there been a single instance in which someone closed their Shorewood business, or decided against starting a business in Shorewood, because the village would not lend them money ? And if they cannot get a loan from a bank, why should the Village take a risk that a bank will not take.

Secondly, how do we decide which businesses to subsidize ? Should we help a new liquor store get started or how about a tobacco shop? We do have more than a number of places in the Village to get a bagel or a croissant, but don't we really need a good donut shop ?

In Shorewood we have a great place to live - we have one of the best school systems anywhere, and our Residential - Urban - Sidewalk - atmosphere is almost "Norman Rockwell" in its flavor.

Our underlying strength is not the businesses that are in the Village. Shorewood is not a shopping destination in itself. We have some destination shops here, such as Goldi's, Harley's and CC Conrad, but for the most part, businesses which locate in Shorewood are here to serve the people of Shorewood. Shops and businesses that fill the need of our population, with a convenience of being close to home.

It is no secret that our population is lower now than at our peak, and that our schools have excess capacity to serve more students. And there are steps we can take to help make Shorewood even stronger and more desirable.

We are foremost a residential community, and we have a larger than average stock of rental units. If we are to use TIF money to strengthen Shorewood, it should be used to help property owners to improve the housing stock --- ie. energy efficient furnaces, newer copper plumbing and updated electrical. We can promote energy systems that are affordable for the landlord to include heat in the rent. We can develop programs to encourage owner occupied duplexes. And we can develop programs that work with both landlords and tenants, to make Shorewood the number one rental option in the Milwaukee Metro area.

As Shorewood has grown more mature, there is also a greater need for housing that serves the needs of our senior citizens who would like to stay in Shorewood, but don't necessarily want the responsibility of a large property to maintain. As I can attest to, after both a hip and a knee replacement, a two story house with a basement, is not very user friendly to those with older joints !

(And by the way --- as a residential, sidewalk friendly community --- we need to resume show removal !)

Our focus in building a stronger Shorewood should be on our housing, and filling the needs of all the different segments of our community, higher and lower income, younger families with school children and seniors with mobility needs.

The next time you walk or drive through the Village, look around and see what kinds of business is here in Shorewood. It is business that is primarily focused on the needs of the neighborhood --- grocery stores, coffee shops, dry cleaners, barbers, hair stylists, pharmacies, insurance agents, realtors. We don't have any of the "Big Box" stores, ie. Target, Home Depot, Best Buy --- and we don't want them --- where would everyone park ?

If the Village really wants to help Shorewood business, it should disband the BID District. When I first came to Shorewood about 15 years ago, we had a local business association, that most of the businesses belonged to. It cost about $70 a year to belong, and we would get together once in a while, share ideas and conversation, and put together occasional events. All in all, the association didn't do too much --- but then again, it didn't cost much either.

Unfortunately, the Village decided that whatever the local businesses were doing, it could do better. Thus the Shorewood BID District was born. Now anyone who owns commercial property in Shorewood pays a tax, for the Village to spend for our business welfare. Whereas business property owners paid about $70 to belong to the business association, they now pay more like $700 or $800 to the Village BID.

We still don't get much --- but we sure pay a heck of a lot more for it !

The best t

 
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