Looking to the long term.

NCSU professor advises Swiss Bear board on sustainability plan.

Click  Sun Journal, March 22, 2013 article

Municipal Services District: The funding mechanism

Middle St.
Streetscape Improvements

James Reed Lane



Bear Plaza




Craven @ Hotel Service Parking Lot



Among the 1977 Central Business District Revitalization Plan recommendations was development of mid-block pedestrian parks connecting with interior parking lots to supplement existing on-street parking and creation of a Municipal Service District (provided in the NC General Statutes) as a mechanism to fund a wide range of downtown revitalization projects. Also referred to as a BID (Business Improvement District) revenue is generated through imposition of a tax on owners of property subject to the ad valorem property tax in a defined district, not to exceed $1.50 per hundred valuation.

Effective July 1, 1978, at the property owner’s request, the City established the Municipal Service District (MSD) in four core blocks bounded by Craven, Middle, Hancock and Tryon Palace Drive (South Front Street).  The $.50 per $100 valuation, generating $250,000 over a three year period was used to develop Bear Plaza ($75,000) on a vacant Middle Street lot, the former site of the Coplon Smith Department Store that burned in the 1970”s. The interior of the mid-block park allowed convenient access (walkabilty) to the second MSD project known as the Federal Alley Parking Lot. The owners of 22 separate properties, ranging in size from 75 to 11,500 square feet in the interior block, signed a five year renewable agreement allowing the City to develop the interior area with MSD funds ($175,000) to be utilized as a common parking area.

In 1984, with the completion of the two projects, the rate was reduced to $.25, generating $24,000 annually. Seen as insufficient funds for any long term major improvements, Swiss Bear led the effort to expand the special tax district based on a plan of public improvements. Mayor Bengel and the Board of Aldermen approved and appointed a MSD Advisory Committee: Jim Chagaris, Virginia McSorley, Paul Johnson, Lou Steinberg, Blackie Stith, Lonnie Pridgen, Harold Talton and Susan Moffat.

They met in June ’85 to define objectives and explore expansion of the district to encompass the entire central business district so adequate funds could be generated to implement defined on-going public improvements. Smith Design Group was hired to develop general guidelines used to solicit property owner’s support to expand the district to encompass the area bounded by property on the north side of Broad Street, west side of Hancock Street to the shorelines of the Neuse and Trent Rivers. Following public hearings, the Board of Aldermen approved the expansion with the exclusion of vacant lots and residential property and reduced the tax rate to $.18 for that fiscal year.

In 2007, the MSD Committee discussed amending the 1986 ordinance to include all properties, residential, commercial and vacant land, as many residences had now become rental properties or converted for commercial.  Since the value of all property within the MSD had increased, many by 700-900%, the Committee believed all property owners in the MSD should be taxed as all properties were benefiting from the improvements. A review of the General Statue determined, when a boundary was defined and approved by the municipality, individual lots within that district (except those with nonprofit status) could not be exempted. Following several public hearings, on January 8, 2008, the Board of Aldermen adopted a resolution to incorporate previously excluded real property into the existing MSD.

Since its creation, MSD tax dollars provided the bulk of funding for numerous public projects; 12 blocks of major streetscape improvements, new streetlights, landscaping, street furniture, four parking lots, two mid-block pedestrian parks, two alleyways improved, design guidelines, special reports, purchase of the lot at the northwest  corner of Craven and South Front Street, personnel for litter pick-up, foot patrol and South Front Street streetscape improvements from East Front to Hancock Street that will begin in the very near future.

The commitment of property owner’s and involvement of the private sector has been vital to downtown’s success. The increase in property values within the MSD reinforces it.

MSD Property values 1979- 2012

• $8.75 million - 1979-80

• $63 million - 2002-2003

• $109,537,935 - 2009-2010

• $166,823,448 - 2010-2011

• $167,782,462 - 2011-2012

Swiss Bear coordinates the MSD meetings held quarterly at which time the City provides an up-date on funds and projects. The current tax rate is $.12.

Swiss Bear: a catalyst for positive economic change

200 Block of Middle Street

Broad Street 1970's

 

In the post WWII years, the advent of the automobile, railways and improved roads led to the gradual deterioration of small towns across the nation. Suburbanization, a new phenomenon and development of shopping malls, enticed residents to leave the old established residential neighborhoods for the newly developing residential areas.

In New Bern, an important port and mercantile center in the early 1900’s, the downtown was the heart and soul of the community, the center of civic and social activity and in a very real sense, symbolized the community’s identity and embodied its heritage. However, by the mid-1990’s, New Bern became nothing more than a rest stop—a town that people passed through on the way to the beach.



Deteriorating Waterfront

The downtown waterfront lined with piers, ships, and barges  bringing goods from all over the world to the businesses of lower Middle and Craven Streets in the early 1900’s, steadily declined. Deteriorating warehouses and vacated commercial buildings were a blight on the waterfront.  As businesses closed and buildings were boarded up, tax revenues declined. Many historic homes were demolished.  Construction of the Neuse River Bridge in the early 50's and widening of Broad Street to accommodate automobile traffic led to the downtown's further decline, creating a barrier between the residential area and the central business district.  

 

 

Middle Street

Downtown reached its lowest point in the early 1970's when, under a federal urban renewal program, all but three buildings along the Trent River on the 14-acre tract between East Front and Hancock Streets were demolished. A concrete bulkhead was constructed and the land filled in hopes of attracting new development.  Although an Economic Development Commission was formed, the 14-acre parcel remained vacant throughout the decade.

In the late 1970's, local government officials and community leaders worked together to reverse the decline.  A Central Business District Plan was completed.  The Plan recognized the key role the City’s historic assets, the downtown waterfront and expansion of the tourism industry could play in the revitalization of the downtown and redevelopment of its waterfront. The plan recommended bringing a new market into the downtown area to support remaining businesses and strengthen the deteriorating tax base.  The combination of resources could justify the efforts necessary to attract a market of recreation, tourism, and retirement-oriented housing to the area so the downtown would once again become a thriving center of civic activity..

The Plan recommended creating a locally funded, private nonprofit organization to spearhead and coordinate revitalization efforts--thus the establishment of Swiss Bear in 1979. The agency’s name is derived from the hometown of the City’s founders, Bern, Switzerland (Bern means Bear in German). The objective of this public/private approach was to tap the energy and motivational resources of the business community, coordinate and fund some of the private enterprise efforts and work closely with the City and County governments.

A National Register and local historic district was created to encompass the central business district and surrounding residential area. In 1980 New Bern was selected to participate in the NC Main Street Program, developed by the National Trust for Historic Preservation to encourage economic development.

Thirty four years later, downtown New Bern’s recognition as a Main Street success story is due to many factors. Development of long range plans with achievable goals, involvement of local government officials and community leaders and the commitment of the Swiss Bear organization that helped create an environment that promotes tourism, attracts retirees and other residents has intensified the sense of pride and community spirit in New Bern.

Future columns relate challenges and opportunities Swiss Bear and the community met to revive and preserve our historic downtown. For more information go to: www.downtownnewbern.com

 

Feb. 3, 2013

Susan Moffat Thomas

Executive Director

'A greater downtown will not merely be a dream'

Volunteers display Swiss Bear's new flag
made by a local citizen not long after the
 organization's creation in 1979.

On April 5, 1979, the Downtown Revitalization Committee officially transferred its responsibilities to the newly created organization, yet to be named and formally structured, at a public meeting in the Tryon Palace Auditorium. Its mission: to stimulate and coordinate the revitalization of the downtown and redevelopment of its waterfront.

In May, Doug Davis, Chairman; John Green, Vice Chairman; Virginia McSorley, Secretary; B.J. Wright, Treasurer were elected by acclamation to lead the organization.  Following the election, a motion by committee member David Henderson that the organization needed to file for incorporation, the Chairman stated a name for the group was necessary for incorporation. John Green’s suggestion, Swiss Bear, Inc., was adopted.

In late August, Swiss Bear received the incorporation charter as a 501(c) (3) nonprofit providing the right prescribed by law to solicit and receive contributions and gifts, exclusively for charitable or social welfare in furtherance of the purposes of the corporation and federal tax exempt status. 

By-laws were adopted and the composition of the board of directors consisted of not less than 18 or more than 25, nine by virtue of their office: New Bern Historic Foundation, New Bern Historical Society, New Bern City Government, New Bern City Administration, Craven County Government, Craven County Administration, Chamber of Commerce, Downtown Merchants Association and New Bern Planning Board. Nine additional members elected from the community-at-large, composed of citizens who demonstrated an interest in the objectives and work of the corporation.  

Charter members of the first board were George Slade, Harry Vatz, Martha Smith, Gordon Parrott, Jim Ross, Bill Edwards, Dell Ipock, Frank Hargett, Nick Scholz, J.C. Outlaw, David Henderson, Johnny West, John Hill, l.J. Eubanks, Jr., Roland Grubbs, George Scott and Ralph Mann.

Martha Smith designed the first official logo and a budget of $45,000 was adopted. Swiss Bear committed to raising $15,000 from the community with commitments from the City and County of $15,000 each in matching funds. The board would meet the third Wednesday of every month at 7:30 a.m. to carry out the established goals and priorities.  

Activities and accomplishments of the Downtown Revitalization Committee and Swiss Bear in the late 1970’s included:

• Raised $8,000 to fund the Central Business District Revitalization Plan.
• Recommended the City’s purchase of the Coplon-Smith vacant lot to develop a mini-park (Bear Plaza) to provide access to Middle Street from the inner block parking area.
• Garnered   support of downtown property owners and requested the City’s establishment of a special tax district to fund downtown public improvements.
• Acquired grant funds and commissioned renderings of the downtown storefronts by East Carolina Regional Development Institute to encourage facade rehabilitation.
• Sponsored the first annual Swiss Bear Festival.  
• Sponsored public forums on the importance of historic preservation.
• Developed plans for forming a Historic Preservation Commission approved by the City Planning Board.
• Lobbied with other businesses for retention of the Courthouse in the downtown.
• Assisted the New Bern Civic Theatre in the acquisition of the Tryon Theatre on Pollock Street.
• Assisted the newly formed Craven Arts Council & Gallery with the acquisition of the old First Citizens Bank and establishment of the Bank of the Arts.




A Swiss Bear Festival sign displayed in front
of a vacant building that housed an antique show
not long after the organization's creation in 1979.

As 1979 drew to a close, a memo to all downtown businesses from John Phillips, owner of Bryant McLeod Men’s Store, summed up an event filled year.

 “We got the ball rolling! With your continued enthusiasm and attendance at Swiss Bear’s informal monthly meetings, looking forward to a GREATER DOWNTOWN NEW BERN will not merely be a dream. It will become a reality that we, working together for a common goal, will see come to pass.”

Susan Moffat Thomas

Executive Director