While most people were popping champagne corks and tossing confetti to ring in the new year, at that stroke of midnight, Vancouver’s Downtown Association had its eyes on the state Dept. of Community, Trade and Economic Development website.
The VDA has been committed to being first in line for funds from the Main Street Tax Credit Incentive Program for the past three years, and will have $400,000 at the end of the year to show for it.
Administered by CTED, the tax incentive program provides a business and occupation tax credit or public utility tax credit for private contributions to downtown and neighborhood commercial district revitalization organizations.
A business also may contribute to CTED’s Main Street Trust Fund. Businesses that participate may receive a tax credit for 75 percent of the value of a contribution if it is made to a revitalization program, or a credit for half of a contribution made to the trust fund.
An individual downtown and neighborhood commercial district can receive contributions up to $133,333.33 (totaling $100,000 in tax credits) per year, and only $1.5 million in credits may be used per year statewide – distributed on a first come, first served basis.
“The first 10 minutes of the year we have our foot in the door,” said VDA board member Lee Rafferty, who co-owns Spanky’s consignment shop. “It’s a race.”
Vancouver is the only community to take full advantage of the program each year, she added.
But being first in line is only half the battle.
Before the VDA could log in at midnight, one or more business has to pledge that $133,333.
This year, Vancouver-based Hi-School Pharmacy and The Holland Inc. will split the contribution.
“We’re tickled,” Rafferty said. “They’re two homegrown corporations that have a deep affinity and love for their hometown.”
Bank of Clark County and The Columbian split the first year and Albina Fuel and First Independent split last year’s donation.
The VDA was pretty green when Rafferty spearheaded the effort three years ago, she said.
To guide the process, Rafferty created a steering committee that included Keith Wallace of Frumenti, Lander & Wallace CPAs, JD White, Bank of Clark County CEO Mike Worthy, Schwabe Williamson and Wyatt attorney Lisa Lowe and developers Brot Bishop and John McKibbin.
“They lent their advice and frankly, their good names,” Rafferty said. “They got us those appointments (with future donors) and helped build our credibility. For us to take this on, we needed some help to get traction.”
The piece of advice that stuck was not to undersell the program’s potential – to think big, she said.
“When you have a compelling message, it’s not hard to make the call,” Rafferty said.
The Holland Inc. Chairman Tom Mears said he wasn’t familiar with the program until he got Rafferty’s call.
“As I listened, it sounded very intriguing,” he said. “It’s an opportunity for the state to bring financial resources to the community and a great way to leverage our investment.”
The Holland and Hi-School Pharmacy have each committed $66,666 by the end of the year – $50,000 is a credit against their B&O taxes and the remaining $16,666 is a donation to the VDA.
“There are so many things possible that could be done with the money,” Mears said. “With everything happening – the waterfront development and access projects – the VDA will have to be very selective on how they utilize the money, and I have confidence they’ll work that out.”
Mears also credited the foresight of the state to create the innovative program.
The VDA plans on using much of the funds on the temporary redevelopment of the former bus mall property downtown.
The 50- by 200-foot stretch of concrete on Seventh Street between Main and Washington streets is owned by C-Tran, and planners are in the midst of designing a temporary use for it that can demonstrate sustainable urban development.
It needs to be temporary because the property may be needed for a high-capacity transit station if and when it comes to Vancouver.
Other tax incentive funds have gone to the welcome wall mural at Fifth and Main Streets. The association is hoping Main Street is converted to two-way traffic, which could open many opportunities for further investments, Rafferty said.
Megan Patrick can be reached at mpatrick@vbjusa.com.
