Leaders from a broad spectrum of the Chestertown community met Friday morning at the request of Mayor Margo Bailey to discuss the town’s stalled economic recovery. About 20 leading stakeholders attended.
Representatives from Washington College, Downtown Chestertown Association, Main Street, Kent County Tourism, S.C.O.R. E., non-profits, and merchants spoke frankly about the weak local economy.
The lack of middle-income jobs, the challenges of attracting companies and workers, and the under-performing school system were targeted as the culprits of the stagnate economy.
Informal conversations have been numerous since the economic down-turn began in 2008–but the meeting was one of the few times that so many community leaders met to discuss a broader economic plan for Chestertown.
Many of the stakeholders had not spoken to each other in years but found total agreement on a few fronts.
While Chestertown has a few more bright spots than most, the “big picture” was alarming to most. A stalled real estate market, a growing population of non-resident workers, scarce quality housing, and empty storefronts all contributed to a sense of frustration.
All who attended agreed that a sophisticated long-term plan for a local recovery must be implemented–and the commercial, retail, non-profit and civic sectors must all be involved.
Despite these broad areas of agreement, differences of philosophy, methodology, roles and responsibilities remained unresolved.
Joe Holt, a vice president at Washington College, said more student shoppers would help the ailing local economy, but it should be part of a broader approach, and not a silver bullet.
“We can talk about students coming downtown, but they really don’t grow the pie, it will just slice the pie in a different way’ Holt said. “The challenge here is to have Chestertown be more attractive seven days a week to a broader group, not just students.”
Other participants challenged the notion of focusing investment mainly on tourism and said the focus and investment should shift to local citizens who live and work in the community.
Bart Stolp of S.C.O.R.E., a non-profit group of retired business executives that helps start-up companies, felt that critical demographic data and other research should guide Chestertown’s decisions.
“The growing population of Chestertown is not young professionals. What is growing is the retirement community. We need to see this trend as an important indicator that our businesses and retail sector need to develop plans around this emerging demographic,” Stolp said.
“We also don’t have workforce attractive housing,” said Mickey Elsberg, who serves on the Mid-Shore Foundation and Rebuilding Together. “We did a survey of housing , the first in the state, and delivered it to the County Commissioners–and have heard nothing back from them. We don’t have attractive affordable housing for workforce people.”
Mike Thielke, Executive Director of the Eastern Shore Entrepreneur Center highlighted the need to invest in ways to attract a growing “creative class” for the town.
“That means that we need to make investments in the arts, cafes, good schools, and a good library system,” he said.
It was also noted that some of the area’s largest employers were not at the meeting, and some participants expressed concerns over an unfriendly business climate.
“After working for twenty-three years, I’ve never been invited to a governmental meeting, except for today, and asked what government can do to help grow Washington College. We need to bring our business community in to this conversation as well,” Holt said.
Many participants were passionate in promoting the tourism sector. Bernadette Van Pelt, director Kent Tourism & Economic Development, reminded the group that tourism and the marine industry represent the second and third positions of economic drivers. The first is agriculture.
Main Street’s coordinator for Maryland, Amy Seitz, suggested that the whole town needs to be supported, not just the downtown shops.
“You need an economic development plan for the whole town,” said Seitz, pointing to success stories like Frostburg, where Frostburg University worked closely with local leaders to rebuild downtown, including moving administrative offices.
Bailey concluded the meeting with a commitment to advise the town council of the major takeaways from the meeting, and develop a strategy for both short-term and long-term economic recovery.
Mickey Elsberg says
The survey and study of “Workforce Housing” needs for the County was submitted by The Economic Development Advisory Board.
rds1955 says
If you keep the same mindset as is, ( How many of our African American citizens are employed in Agriculture, Tourism or the Marine industries, or own downtown shops ??? ) or keep on calling meeting after meeting, year after year and not do a 180 degree change of perspective and direction, focusing on eliminating all the burdensome costs and regulations associated with a business moving here, opening shop and hiring people, then nothing will change…
This is nothing more than another example of Smoke & Mirrors…Stop complicating everything, and start to build with the basics…Keep it simple…
“The lack of middle-income jobs, the challenges of attracting companies and workers, and the under-performing school system were targeted as the culprits of the stagnate economy.’ That’s a Crock…It’s been like that here for years, just not during a stagnate economy period…WHY IS there a lack of Middle Income Jobs, WHAT ARE the Challenges of attracting Companies, and WHY DO we have an under-performing school system when we pay out the rear end in taxes for their education? Remember Black & Decker or Wheelabrator years ago? How were they discouraged in coming here? How about Campbell Soup, Wisco Envelope, or Baltimore Business Forms? What was the underlying reasons why these business could move elsewhere to continue there production?
I do not have the answers except that a pattern of discouragement, excessive taxes, regulations and roadblocks have always been put up to a number of companies that have attempted to move here…
If you don’t want anyone moving here because you think it will hurt the environment, fine…But don’t whine and cry about not having any jobs, unless and until you are willing to make the hard sacrifices and compromises…AND it’s even going to be that much more difficult in this economic period…
Editor says
Anonymous comment approved by editor
Tom Andrews says
“WHY IS there a lack of Middle Income Jobs, WHAT ARE the Challenges of attracting Companies, and WHY DO we have an under-performing school system when we pay out the rear end in taxes for their education?”
These problems are closely related, if not one and the same. My observations following about 10 years living and working in Kent County and sending my kids to public schools there (I’ve since moved on):
To succeed, employers need a stable, well-educated workforce. Sadly, this is in short supply in Kent County due to two factors: 1) simple demographics–there just aren’t that many people there; 2) the unwillingness of many people fitting this description to relocate to Kent County. Why are they unwilling? The schools don’t help. If you asked me (a college-educated, gainfully employed professional) to return, I wouldn’t do it, despite a real affection for the area and many friends there. Where we currently live, my children attend public schools that offer dramatically more opportunity–and higher quality instruction–than can be had in Kent County public or private schools. They are routinely challenged and pushed toward excellence, something that, frankly, never happened to them in Kent County schools. For the privilege, I pay double the property taxes that I paid when living in Kent County. These taxes, however, are about average for the region in which I now live and are not considered excessive. The employment picture here is good, particularly given the times.
Bottom line: it’s a cyclical problem and solution. A good public education system produces skilled workers. Skilled workers attract business. Business brings tax revenue (as do employees). Revenue feeds a quality public education system, which is helpful in attracting more well-educated employees for the region’s businesses. It takes investment in public education at a level that simply hasn’t happened in Kent County.
Keith Thompson says
Here are some ideas that I’ve shared with Mayor Bailey on the air at WCTR…
#1. Marketing…you can’t wait for things to happen, you have to go out and make it happen. I think the town can have a greater marketing presence, especially via social networks like Facebook and Twitter. I think it’s important to have one enthusiastic person who can serve as a town cheerleader who is active on the internet and can serve as a sort of town crier or spokesperson.
#2 Activity vs. Commerce…activity doesn’t drive commerce, commerce drives activity. A lot is being made about Chestertown being an arts driven community with the idea that the arts activity drives commerce. I think the arts certainly drives activity but I don’t know how much the activity actually generates business as the arts are only a draw for those who are into the arts. If those who are not into the arts have a reason to be downtown via commerce, there is a good chance they’ll stick around for a show at the Garfield Center or will catch an art show at Artworks. Create more of a commercial culture and the commerce will help support things like the arts, recreation, Rails to Trails, etc.
#3. Taxes…base tax revenues more on activity and production and less on property values. I think that with a lack of commercial activity, property taxes leads to less incentive to improve property as the increased value simply leads to increased taxes. Business revenue generated by the tenants should offset the property tax load for the property owners which should shift the incentive to getting tenants into the property, even if it means that the property owner will cut the rental rates to get the tenants in. I think this idea applies as much to the shopping centers as it does with the downtown.
#4. Become a college town…not a town with a college. Washington College is perhaps the biggest economic generator for the town and it’s underutilized. Encourage business activity that will get the kids downtown (the game store is a start). Get greater visibility of the college downtown (an off-campus gift shop or bookstore perhaps?). Also realize that the college’s investment into the riverfront will be a major component of the town creating a riverfront economic hub after the marina purchase.
I don’t figure this is a comprehensive list, but hopefully will serve as some thought starters.
Steve Payne says
Keith,
I agree with #1. The Spy and the Farmers Market both have great Facebook pages. Rock Hall does too but they sometimes overdo it. Some days I’ve received 15 or more postings from them and I’ve often come close to “Hiding” them.
I agree with part of 2 but I believe that both drive each other. The arts and other events do bring in both local people and from farther away and activity does result in commerce. They are mutually beneficial.
I don’t think property owners need any more incentive to lease a property. A vacant property is quite an incentive by itself and I doubt the owners are turning away tenants. Flexibility in rents and leases that help tenants with their build out expenses are very important. A deal where the first 3 or so months rent are free is very common.
It would be nice to have a meeting with local property owners and see what they are experiencing.
Keith Thompson says
Steve, while a vacant property may be an incentive to the property owner; a vacant property does not benefit the town’s retail economy. Getting tenants into these properties should be a priority and I’m trying to think of an out of the box way to make tax policy achieve that goal. The idea isn’t to penalize a property owner per se, but is an attempt to give that property owner greater incentive to make that property more economically beneficial for the town. Yes it would be interesting to hear what the town’s property owners are experiencing.
Steve Payne says
Keith,
Sorry but I just can’t conceive of the idea that property owners are just sitting on property and losing income. Sometimes speculators or investors buy property with a plan to do something with them other than their previous use but thats not what I think is happening here.
If the government is interested in helping bring business to town then they should help the business owners.
Before I moved here I was in commercial real estate for many years. A friend of mine did a deal where the town of Takoma Park made a short term loan to a new tenant to help them with interior improvements. The tenant didn’t have the money and neither did the landlord. Something like that might help.
BTW: on my reference to Rock Halls Facebook page. That only happened at the very beginning.
Keith Thompson says
I’m not placing blame on the property owners. I think that the property owners are simply attempting to maximize the value of their property and perhaps they see the lowering of rental rates as something that devalues the property. My aim here is to get a greater bang for the buck from the tax revenue base. I think if you get the focus of tax revenue away from property values, by letting business tax revenue offset property tax revenue, the town is still getting the same amount of revenue but more of the revenue is getting generated from economic activity which has a greater overall benefit to the town than simply being generated by the property. My idea is to promote economic activity which doesn’t happen if you have empty storefronts. I want to fill those storefronts.
As for financing loans for individual for property owners and/or tenants…I’m a bit uncomfortable with that idea on the grounds that there is a potential for the town to play favorites and such a practice isn’t fair to those who aren’t among the favorites. It also puts the town in the position of making specific decisions on the type of businesses they’d be willing to help or not help, especially if doesn’t mesh with what the free market would do. I think if the town wants to actively invest in something that directly benefits business, then the investment should go into infrastructure; especially infrastructure that facilitates economic growth by helping everyone. This is why I supported the idea of the marina purchase. I see the potential of the riverfront serving as an economic hub and public ownership of the riverfront should benefit any economic activity that happens there and not just economic activity that is favored by the town leaders.
Steve Payne says
I hear you Keith, but a property owner like you describe is a speculator and I really don’t think they are dominating the market. The property tax valuation is based on actual income not hoped for income as well other market assumptions made by the assessors office. The market sets the prices and if an owner is wrong then their competitors will benefit. I just don’t believe that there are potential tenants around that can’t find space due to excessive rents. There are too many unsold homes (although I’ve heard the market is improving) around. Should we charge the owners a higher tax?
If it hasn’t been done already a study should be done to determine the vacancy rate and make a list of all the available properties. I suspect some of the local realtors already have this information. Getting the owners and leasing people together to talk about what they’re seeing in the marketplace would be a good idea too.
I agree that having the Town assist could result in favoritism. If that could be resolved I think it’s better to assist the tenants if possible. The tenants operations should be looked at too. But like Rob Comfort says, it might not be pleasant.
Keith Thompson says
Steve, I think what I’m getting at here is that I’m not interested in trying to work the parameters around the system that is currently in place in the town. The status quo isn’t working (the increasing number of vacant properties prove that) and I think the town needs to do something different than the status quo.
Michael Hildebrand says
This is the perfect example of why Kent County will never have any economic success, clueless leadership! A meeting of “leaders” as to why there isn’t economic recovery in the county, REALLY? What a joke!!! The leadership of Kent County has done NOTHING in 40 years to do or bring anything into this county that would create anything to support a “middle class” lifestyle. Any business that has even tried to locate here has been meet with such resistance that it decides to go elsewhere. Rds1955 named just a few. The sadder note is not only does the “leadership” of this county discourage growth here but they also do any and everything to discourage growth in the counties that neighbor us. Currently as Queen Anne’s County is trying to build a new shopping area at Rt. 544 and 213, our “leadership” along with some of Kent County’s major players in non-economic growth are lobbying and helping undermine the law passed to allow it to happen. How do you expect to have a middle class when there is nowhere for them to get their basic needs? Downtown has very nice stores and in this little historic town, there is a need for them and I wish them success. But these businesses cater to the tourists and not to the locals that live here. Where should we go to buy the goods we need to survive? Our grocery stores are below average at best, as for a department store, well you can forget that. The best we have are the dollar stores and we are lucky to have that! The employers in the county don’t even pay enough to live here. Maybe the “leadership” needs to look at the cost of living verses the average wage paid in the county. Keith Thompson suggested utilizing the college, but their wages paid don’t cover the cost of living. The college doesn’t even hire local contractors when doing any of the projects on campus. When government and the community do everything in their power to fight business, word gets around in the business world. Who in their right mind would want to come here and be made to spend tons of money to fight city hall? In today’s economic climate, businesses are not even going to consider an unfriendly environment like Kent County. The bottom line is until the ”leadership” of this county REALLY wants any kind of economic growth in this community, then they are going to have to be serious about it. As for this meeting, the phrase blowing smoke up someones ……….. comes to mind.
Keith Thompson says
Michael, when I speak of utilizing the college I’m talking about tying more of the town’s economy to the college’s presence. I’m speaking about giving the students a reason to go downtown. I’m speaking of providing things for the visitors (especially to the college’s upcoming riverfront campus) or for the other college events. Most towns with a college have a local economy that is centered around the college; therefore they are college towns. Chestertown is a town with a college. Washington College has a big influence on what goes on in the town, but the town’s economy doesn’t focus much on that influence. I don’t know who is at fault for this, but as someone who grew up around college towns, this seeming divide between town and gown in Chestertown strikes me as rather odd.
Gibson says
“After working for twenty-three years, I’ve never been invited to a governmental meeting, except for today, and asked what government can do to help grow Washington College. We need to bring our business community in to this conversation as well,” Holt said.”
What government can do to grow Washington College? Apparently government is the answer? WC’s tax assessments are about 53 million dollars in Chestertown. I’ll leave it up to the experts to figure out what that is worth in foregone tax revenue for the Town. ‘What government can do for Washington College?’ Fascinating.
Chestertown sits within the global economic arc of history. Europe, today, warns of a “downward spiral”. And yet, we blame local leaders and ask “what government can do to help Washington College.”
The fool looks at the finger that points to the sky. And, perhaps, other fools look at the forest fire and blame the girl with the bucket of water.
What is the percentage increase in Washington College property holdings in Chestertown in the last ten years? And yet, apparently, government has not done enough. Perhaps we can tell them they don’t have to pay property taxes? Oh, wait, never-mind.
Rob Comfort says
Here we go again…when faced with a challenging community problem, the knee-jerk reaction is to drag out our perennial whipping boys-the public school system, Washington College, government regulations & taxes and unappreciative local customers. None of these four is the problem here! While there are struggling and failing businesses there are many notable successes. The solutions are found by examining the strengths and weaknesses of each on a case by case basis. Finding the path to a healthy local business community requires us to, for once, do an honest, candid, objective and thorough self-appraisal. I doubt that many in this community have the stomach for, what would certainly be, such an unpleasant process.
rds1955 says
I agree partially with what you say…two of the four “knee-jerk” reactions are whipping boys and shouldn’t be classified as such…the public school system, and Washington College…The public school system may not be A+, Top Rated Grade “A” material, but it’s good enough to educate our youth to send them elsewhere for higher education prospects or starting careers…There is nothing here for them…And I don’t understand why a discussion about helping Washington College grow “OR” attempting to figure out a way for them to help in the overall economic well being of the community is anywhere involved in this debate…In the long run, they will have a minor effect on the overall big picture. Burdensome Taxes and Regulations are concerns that will sway both large and small businesses coming not just into Chestertown/Kent County, but all of Maryland..The flow rate of companies and business flowing out of Maryland versus those flowing in are terribly uneven…Why come here if West Virginia, Delaware or Virginia offer a better package deal in setting up shop? A business is kind of like a garden…some plants require differing growing methods and care, but all require soil, light, water and nutrition. you remove or impede part or all of the needed attributes, and your garden dies…You keep on burdening companies with more and more taxes and regulations, it’s insane to think it will keep on conducting business…Unappreciative customers ?..Maybe…You have no idea how many people I’ve been in line with at local stores or the food market and they have absolutely nothing good to say about the Paper Bag regulation imposed by the Town Government. Chalk up another reason to go to Delaware once a month to do your shopping… Walmart tried coming here, but was rebuffed by a select few who could afford legal means to keep them from coming here, apparently because it was felt they (Walmart) would destroy local small businesses…Hmmm.. I think they are doing fine all by themselves in that perspective…Was this issue put up to the population to see how they felt?…Protectionism, taking away the freedom of choice….Hmmm… I think unappreciative customers could have some validity……
MBTroup says
It is a time for choosing – nationally and locally. Indeed it is time to have a frank discussion on where we stand on the guns and butter curve, and where we ultimately can be. More to follow…
Steve Payne says
You mean a real War On The Shore. Nationally it seems to be a done deal for the gun guys.