Hill District Under Budget, On Track

by MICHAEL J. MISHAK

The Chestnut Hill District, a business improvement group largely supported by the real estate taxes of local property owners, finished its first year with a cash surplus, a short list of completed capital projects and a solid blueprint for a vibrant commercial future, said John Levitties, president of the group’s board, last week.

Advanced by the Chestnut Hill Business Association, the group was formed last June to combat a decline in public dollars and dedicated volunteers in the business sector.

Under state law, property owners along the business strip pay an additional 10 percent of their current real estate taxes each year to fund the district, a provision that met with significant opposition at two contentious City Council hearings last year.

After a bumpy start, organizers met with critics to revise the group’s bylaws, making a number of concessions, including a tax reduction.

In its inaugural year, the Chestnut Hill District instituted a street-cleaning program, purchased new trashcans for Germantown Avenue and resurfaced one of the area’s parking lots. It also funded the Avenue’s holiday lights display and Sunday shopping trolley.

“I think people are pleased,” Levitties said in an interview last Friday. “[The BID] has made a difference in the way the Hill looks, feels and operates.”

While the group took small steps toward physical change, much of its time and money was spent on three studies that will guide future work in the areas of parking, streetscape and retail marketing.

After nine months of operation, the Chestnut Hill District finished in the black. The nonprofit group, whose fiscal year ended in March, reported a cash surplus of about $4,600, Levitties said.

The savings could be attributed in part to a minor restructuring in the street-cleaning budget, he said. Initially contracted to an outside firm, the work is now performed in-house by one full-time staffer at the Chestnut Hill Business Association. In addition, two part-time workers water the Avenue’s flower planters.

Also, the retail market study, conducted by Urban Partners, was largely funded through a combination of grants obtained by the Chestnut Hill Business Association, Levitties said.

Though the Chestnut Hill District reached into its own coffers for the parking study, which was performed by Carl Walker, Inc., it recently received a $25,000 grant from the state Department of Community and Economic Development to help defray the cost of that study, he said.

Nearly all of the business district’s property owners paid their assessments in the first year, Levitties said. A handful remain delinquent, he said. But all have promised payment, and Levitties expects to receive their checks in the coming weeks. Each assessment is less than $1,000, he said.

While Levitties released little details about the Chestnut Hill District’s budget, he said the group collected more than $131,000 in property assessments in fiscal 2005. He declined to disclose both the overall and the individual costs of the three commissioned studies.

Asked if the group would seek lien enforcement from the city in the event of a scofflaw property owner, Levitties said, “The board of the BID would not be acting responsibly if it allowed property owners within the district to knowingly let their assessments go unpaid.”

The exit of Suzanne Biemiller, executive director of both the Chestnut Hill Business Association and the Chestnut Hill District, last month resulted in some minor operational hiccups, Levitties said, but the group hopes to install a replacement by September.

“I understand the membership desires rapid and substantial change,” Levitties said. “We want to provide that, but, at the same time, we’re cautious about spending.”

Still, some are already noticing change.

Levitties points to a bevy of filled vacancies in recent months. New arrivals have shaved the number of Avenue vacancies in half, he said.

Tom Ivory, owner of Baker Street Bread and former president of the Chestnut Hill Business Association, said he observed an increase in both sales and foot traffic in the last year.

Anne McNally, owner of McNally’s Tavern and current president of the Chestnut Hill Business Association, agreed.

But for some with businesses below Willow Grove Avenue, change may take more time. Carmen Notarianni, owner of Carman’s Shoe Repair, said that while the BID may benefit his shop in the long term, “the only visible thing I can see is the two guys going around cleaning up the trash.”

He would like the Chestnut Hill District to improve the Avenue’s street lighting, one of several items on the group’s agenda for the current fiscal year. Levitties welcomes the input. “Chestnut Hill is an interesting place,” he said. “It’s better to have a cacophony of passionate voices than outright silence.”

He added: “We’re not here to ram proposals down anybody’s throat. If you have concerns, we want to hear them.”

This year, the group will concentrate its efforts on identifying funding to implement its streetscape plan, which involves planting more greenery, improving street lighting and implementing traffic-calming measures.

Staff intern Amy Brisson contributed to this report.