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GC to Hold CDBG Public Hearing

From staff reports

Will Gate City be able to entice local and regional shoppers into its downtown area? That’s what local government leaders are hoping as they begin a quest for federal funding to help with downtown revitalization.

Town officials are sponsoring a public hearing next week to solicit input from local residents on proposed revitalization efforts. The meeting set for Tuesday, Feb. 19 at 5:30 p.m. in the town hall auditorium is being held to allow for public comment on the town’s efforts to obtain a $700,000 Community Development Block Grant.

Last year town officials applied for a similar grant and although they weren’t unsuccessful, officials are encouraged.

Cindy Coates, acting manager of Gate City, said everyone is invited to attend and let town officials know their feelings about the future of the town.

“Any business owner, merchant, or citizen of the Town of Gate City or any person interested in the revitalization of Gate City is encouraged to attend,” Coates added.

At Tuesday’s public hearing, Aaron Arnette of Arnette Muldrow & Associates of Greenville, S.C. will be there to further discuss the town’s master plan completed last year.

The master plan is a roadmap for Gate City’s downtown revitalization that was prepared by Arnett Muldrow & Associates, in conjunction with Mahan Rykiel Associates, Inc. of Baltimore, Md. and Mattern & Craig, Inc. of Kingsport, Tenn.

Officials are hoping to satisfy four goals outlined in the plan including:

While conducting research for the master plan, the consultants discovered a difference between the amount of retail expenditures in the Gate City area and those spent in nearby retail markets. “Retail Leakage” refers to the difference between the retail expenditures by residents living in a particular area and the retail sales produced by the stores located in the same area.

If desired products are not available within that area, consumers will travel to other places or use different methods to obtain those products. Consequently, the dollars spent outside of the area are said to be “leaking.” If a community is a major retail center with a variety of stores it will be “attracting” rather than “leaking” retail sales. Even large communities may see leakage in certain retail categories.

According to the master plan, stores in the primary trade area (PTA) for downtown Gate City sold $157.7 million in merchandise while consumers living in the PTA spent $172.5 million dollars in stores of similar type. The retail leakage analysis of the primary trade area suggests that Gate City is leaking sales to the in the amount of $14.8 million dollars annually. This leakage figure is actually somewhat low compared to peer communities, particularly since Gate City is located adjacent to the more urban retail center of Kingsport and Johnson City.

But it’s not all bad news for local merchants as some categories of merchandise have displayed increases.

In general, the primary trade area is gaining in some specific categories including:

According to the master plan, for the most part, these figures are quite typical for a community like Gate City – the retail center of a larger rural area. When you look at rural Scott County, which has very little retail, these residents are coming into Gate City to get their basic goods and services (groceries, convenience, pharmacies, etc). Virtually every other category is leaking to other areas. In fact, if you remove grocery and gas/convenience from the equation, the remaining uses are actually leaking closer to $55 million per year.

What can be done to stop the leaks? Gate City officials are hoping revitalization with an emphasis on expanded and new business development will help. A full copy of the town’s master plan is available from town officials.

If you are interested in downtown revitalization, you are encouraged to attend Tuesday’s public hearing.

All interested business owners and town residents are urged to attend. For additional information, contact Coates, Rita Tipton or Mark Jenkins at 386-3831.

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