Questions & Answers
First Street Renovation Project:
Question #1:
Why are you spending the Town’s money on a project in the downtown area that could be used to develop property along the commercial Route 340 corridor?
Answer #1:
There have been several sources of funds for this development project, along with capital improvement components of water and sewer. The money that the town is investing is matching funds coupled with funds from the Virginia Department of Housing and community Development (DHCD) ($800,000), the Virginia Department of Transportation (VDOT) ($99,000), and private investment. The moneys from DHCD and VDOT are grant funds, meaning that it is not a loan, but given to the town for costs associated with the project. These grant funds would not be available for the development of our Route 340 corridor. The town has taken the position that, in order for the First Street district to be economically contributing to the town, economic/business incentives and other stimulus needs to be infused.
Question #2:
Why doesn’t the Town use the money that they are spending on First Street to renovate residential sidewalks in town?
Answer #2:
The grant funds provided by DHCD must be used in the manner dictated by DHCD; this money must be used to remove all slum and blight in the First Street business district. The major focus of this project is to be the renovation of the building facades. However, the Town has embarked on a sidewalk construction project partnering with VDOT and their Revenue Sharing program. This program provides for a 1 to 1 match of funds to construct new sidewalks and also address drainage problems. The Town has put $200,000.00 into this program and has been inclined to continue this project. The first results of this program can be seen at Pennsylvania Avenue between 1st and 2nd street and also along 3rd street next to the Shenandoah Elementary School. In addition to these sidewalks, others are in the pipeline for renovation and construction. First Street will also have new sidewalks for a two-block area that is independent of the revenue sharing program.
Question #3:
Will the buildings on First Street ever be renovated?
Answer #3:
As a condition to the large grant that we received, the Town had to pledge that all blight be removed from the public eye. The Town has taken a very cooperative approach with the private landowners to help in the renovations of their buildings. Matching grants have been set aside for each property in various amounts up to $30,000 to help renovate their buildings. Also, the grant from DHCD has provided free design services to the property owners by a registered architectural firm. The Town currently has 16 properties identified for renovation, and all but four owners have chosen to participate. Other means have been launched by the town to have the remaining buildings comply with our grant requirements.
Question #4:
First Street will never be like I remember it, so why not leave it alone and do nothing?
Answer #4:
It would not be the responsible thing to do to turn your back on any blighted area of our town. This part of town has been neglected for a considerable amount of time, and an effort needs to take place in order to have it contribute to the Town in a positive way. People are correct in stating that First Street will never be the way that it was. This area once served as a shopping and entertainment area for local people. With the event of strip malls and mass retailers, traditional shopping would be challenged to occupy this commercial portion of town. However, unique crafts, arts and other niche shops can and will thrive in this area. The main customer base will not rely solely on the town residents, but on the tourist trade that the Town is trying to promote. The Town is well positioned in proximity to the Shenandoah National Park, Massanutten Resort, Luray Caverns, the Shenandoah River, and other natural attractions. With the renovations, it will be an inviting place for tourist and town people to both enjoy and be proud of.
Question #5:
What incentives does the town provide for investors and property owners in town?
Answer #5:
The First Street area is arguably the most incentivized business district around. There are programs established to give tax credits from both state and federal governments. The county and the Town have agreed to a tax abatement program that will freeze the current accessed property values at their current rates for a 10-year period. As mentioned before, free architectural services have been provided to each property owner. Marketing money and a marketing committee has been implemented to help property owners fill their storefronts once renovated. Entrepreneur classes have been cosponsored by the town, James Madison University, and the Small Business Administration to help people succeed in their business. Various other programs have been established to make this a successful partnership.
Question #6:
If this renovation project is successful, where will parking be available?
Answer #6:
This has been discussed in depth at various levels. The current plan is to have employees and owners park in the alley behind their respective businesses, in order to free up available parking on the street for their customers. This concept has worked very well in surrounding communities with similar parking issues. Upgrades are also being discussed for the current alleyway. These upgrades may include paving and drainage. There is also a large parking area that can be utilized behind the municipal building, at the old “City Hall” building on Second Street, that could accommodate a large number of vehicles. There is also discussion underway to provide additional parking lots along the First Street area. Parking will be available the entire length of First Street, Virginia Avenue and Pennsylvania Avenue. The First Street project will truly be considered a success if parking becomes a major issue, and plans have been discussed to accommodate this.
Question #7:
Why is there construction on the other side of the railroad arch?
Answer #7:
This is part of the overall comprehensive planned development of the Town. There will be a connection link established from the Town’s River Park to the First Street district. There have been significant improvements at the Town’s River Park with the completion of the access road, public restroom, and the proposed creation of a linear walking trail. The Town is also developing the Big Gem tract into a historical and recreational park that, coupled with the River Park, will be an attraction for tourists and residents alike.
Question #8:
What improvements are actually being undertaken by the Town in the First Street area?
Answer #8:
There has been a complete upgrade of water and sewer distribution, and lateral lines have been replaced and connected. New curb and guttering has been added to the railroad side of the street. New curb, guttering, and sidewalks will be added to the commercial side of the street. Utility poles will be removed from the First Street district and placed in the alleyway behind the buildings. New decorative 16’-0” light poles will be installed on the street. Entrance signs will be erected in different areas of town, welcoming visitors into Shenandoah. An informational kiosk will be placed close to the municipal building. The Town Hall, like all of the other buildings, will be getting a complete facade improvement.
Question #9:
What if I want to purchase a First Street building, but I do not feel as though the present structure is worth renovating?
Answer #9:
Several years ago, the Town, in cooperation with the County, developed a mechanism in which to hold the accessed value of the properties at current levels for a ten-year period. If the new property owner elects to raze their property and construct a new building, then the new owner captures a significant tax break. The condition to the new building is that the facade has to be of similar construction and character, which will be validated by our architect. The remaining portion of the building can be of modern construction and facilities. The building must be of equal or lesser size in square footage to maintain the current tax assessment of the razed building. An example would be to purchase an existing building for $20,000.00, raze the building, and replace the building with a newly constructed building of the same or lesser square footage. The new building could cost the owner $250,000.00 to construct, but meeting the conditions set forth by the County and Town, they would only be taxed on the original assessed value of $20,000.00 for a period of ten years.