The organization responsible for many downtown State College events and programs, promoting the borough’s business community and providing support to those businesses will continue its work for at least five more years.
State College Borough Council on Monday unanimously authorized renewal of the Downtown State College Improvement District (DSCID) through the end of 2026 after a large majority of property owners in the district did not object to the reauthorization.
The district includes about 500 properties approximately bounded by College Avenue, Beaver Avenue, Atherton Street and Sowers Street.
Established in 2002 as a nonprofit, the DSCID is responsible for enhancing the downtown. It organizes and manages events such as Light Up Downtown, the Holiday Trolley and Tree Lighting, First Friday, Calder Walkway, Live After 5, Fall Festival and more.
It also contributes to downtown beautification efforts, including the downtown holiday decorations and employing a clean team for public maintenance. It promotes and markets downtown events, attractions and businesses. It provides and coordinate initiatives like the downtown business gift card and parking validation programs. It provides advocacy and support to businesses — including helping establishments collect funds from the Paycheck Protection Program, distributing thousands of dollars worth of personal protective equipment and implementing special programs to encourage local shopping during the COVID-19 pandemic. And it works with government and private partners on local and regional enhancement efforts.
Pennsylvania’s Community and Improvement Act allows for the establishment of neighborhood improvement districts and for municipalities to levy assessments on commercial properties within its boundaries to fund its work. The assessments in State College’s renewal — which are unchanged — are 3 mills for residential properties, 4 mills for commercial apartments and 5 mills for commercial properties.
Those assessments will fund $452,000 of DSCID’s $622,000 budget in 2022, with the remainder coming from the borough, Penn State and other miscellaneous income.
Prior to Monday’s vote, DSCID was last renewed for a 15-year period in 2006.
At the end of each authorization period, which must be for a minimum of five years, property owners can, in a sense, vote on whether or not the improvement district continues. In late October, the 500 property owners in the DSCID received information about the renewal process and how to file an objection by the deadline of Dec. 13. (Business owners who lease space aren’t eligible to object.)
If at least 40% of property owners object, the district cannot be renewed. Borough Manager Tom Fountaine reported last week and confirmed on Monday that owners of 29.6% of properties in the DSCID objected, meaning borough council was free to renew DSCID.
“My only comment on that is that it is good news,” Borough Council President Jesse Barlow said last week when the preliminary tally was announced.
At a public hearing on Oct. 29, most of the nearly 20 community members, business owners, CBICC and Happy Valley Adventure Bureau officials and Penn State representatives who spoke did so in favor of renewing the DSCID. Two, however, said they supported its overall mission but expressed some concerns.
Gary Brandeis, the developer and owner of the Fraser Centre, Hyatt Place and Scholar Hotel, said his company pays more than $40,000 a year in assessments. He said the DSCID should be more active in pursuing public funding for physical improvements to downtown.
“We see this as an investment… I don’t believe that we’ve seen a good enough return on investment so far,” Brandeis said. “I believe in the DID. I support it, but I believe there needs to be change to the DID and change to how it’s run and what the goals are… I believe the DID can do a lot better.”
One owner of a Fraser Centre condo said the DSCID board should have a resident as a member to ensure fair representation. DSCID Board Chair Sharon Herlocher, whose business pays about $25,000 in assessments, said small, medium and large property owners are all represented on the board.
Katie Dawes, who has owned Kitchen Kaboodle, 104 W. Beaver Ave., for 35 years, said the DSCID provides “the face of our downtown,” for prospective Penn State students and young professionals coming to live in the community, which in turn serves downtown businesses.
“The DID is the glue that keeps us focused on unifying efforts to support an upbeat contemporary downtown through organizing events for community, alumni, students and people who love just coming to Happy Valley,” Dawes said.
“Successful business supports a successful downtown from which we all benefit. It is a big responsibility that has been underfunded and perhaps misunderstood. Without continuance of this organization there will be no way for our downtown to support the businesses, university or our community.”
Danielle Stemple, of Lion’s Pride, 112 E. College Ave., said a special monthlong gift card program implemented by DSCID during the early days of the COVID-19 pandemic generated more than $20,000 for her store, helping to pay their 19 employees.
She added that DSCID’s special holiday initiatives have encouraged people to shop downtown even as online shopping has become more prevalent.
“The Downtown Improvement District provides invaluable services to our community and businesses,” Stemple said. “I can say with complete confidence that without this organization, downtown businesses, local residents, homeowners and visitors will suffer. This well-run organization enhances the value of downtown State College, helping to ensure our community remains a vibrant place to live and an exceptional place to visit.”
Jeremy Frank, co-founder and CEO of KCF Technologies, said he and members Centre Region Entrepreneurs Network, a group of local technology businesses, support the work of the DSCID and its importance in helping to attract employees, clients and investments.
“Having a vibrant, attractive set of activities that bring them downtown with intention is more important than ever,” Frank said. “Having a walking downtown, a vibrant downtown, those are the things that are most important to our people and me personally.”
