City grants sweeten the pot

After her success selling baked goods at a downtown Allentown farmers market, Vicky Thomas thought about opening her own bakery.

[michael molovinsky]

paul muschick did a good job reporting the taxpayer contributions to these businesses, i'm preparing an expose on the backscene shenanigans involved in distributing your money
http://www.molovinskyonallentown.blogspot.com...

[comment]

you're a real grouchy stick in the mud who has something negative to say about everything.

[McWar]

Great use of the taxpayers money. Why don't they do something useful, like give it to the gas stations to lower ther prices.

[Mayor Smurf]

WTF?? I thought the KOZ (and its taxpayer screwing) was supposed to be enough public investment to attract second rate restaurants like Juan Tomorrow's - now we have to give them an additional $50K just to avoid the embarrasment of failure? Fat little smurf how could you be any more annoying? At least I'm not the only one to dislike you so much www.f-allentown.blogspot.com - Allenton is filled with bad news - it's not just a perception, the place is terrible and will NEVER improve not because of the residents but because of people like you Mayor Cheeseburger.

[Mayor Smurf]

michael molovinsky wrote:

paul muschick did a good job reporting the taxpayer contributions

He didn't even consider the layers and layers of other public investment already made - everything from the constant betterments (flowers, sidewalks, cleaning, grounds maintenance, cameras, extra police patrols, etc) to facade grants (not available outside of Hamilton Street) to tax incentives (KOZ) to other public investment like using HUD dollars to build and alcohol brewery. I don't agree that he did a good job. I think he is aware of these things but maybe not. Hopefully you, in your expose, will address these issues.

[The watcher]

Good job Ed maybe lowering our taxes will be next?

[Mayor Smurf]

Let me clarify that by saying "some of the remaining money could be used to promote existing restaurants" I'm talking about the only places that matter - The Allentown Brew Works, Federal Grill, Bay Leaf (although dingy). Hmm, that's about it I think, hmmm...not much left. I wish Wendy's hadn't closed. I LOVE Wendy's!!! I wish 7th Street was part of Whitehall.

[comment]

Thomas said she would have opened regardless of whether the city government offered her a cash incentive to cover renovation costs or pay some of the first year's rent. But she said the $11,190 grant will help her cash flow as she starts out.

''It was very helpful,'' Thomas said.''It costs a lot to open a business.''

In an attempt to encourage new businesses to open downtown, the city has awarded seven stores and restaurants a total of $190,000 in grants.

>>>>Is it the role of government to be providing essential short-term credit instruments? Do we not have a local private banking sector?

I agree with Mayor Smurf. In the fairness of all business,(and not denying someone who applies), would it not be better to enact a tax cut for businesses that would amount to $500,000?

Why make the direct grants/loans from the operational budget of the city?

Create a business tax structure that makes the City more competitive for business start-up. If I had a $1,000,000 proft business and get a 1% tax cut, this in $10,000 additional profit. If I am an ongoing concern, my enterprise value has gone up significantly. I then have the opportunity because of this increase in wealth of the firm to go to private sector and secure additional financing for expansion.

If the city wants to act as a funding source for private enterprise, there are methods to do that via private equity investments via the pension funds of the municipal workers, fire, police, etc.

This is not what should be happening, which is political dealings of handing out money of incumbnent politicians. Is this not the big problem of waste at state level with nearly $400 million in walking around money (in the disguise of "economic development").

Allentown and this mayor are a joke.

[Screwy Louie]

The money would have been better spent on a grant to the "CHARLES BRONSON" foundation for equal justice, to improve neighborhood stability and safety.That amount of money would have been more than enough to do the job....