FROM THE GLOUCESTER COUNTY TIMES (Newhouse Newspapers)
Tuesday, October 10, 2006
By Matthew Ralph
mralph@sjnewsco.com
PITMAN -- Saying that the Broadway Theatre's revitalization represents a significant step in the right direction for the downtown, borough officials voiced support Monday for a measure that would give the privately owned, for-profit theater $36,000 in tax relief over a five-year period.
"It's a benefit to the town," said Councilman Gene Shoemaker during a discussion at Monday's borough council meeting. "I think it's all going to come back tenfold."
The council did not take any formal action Monday on the measure, which would be the first tax abatement given to a downtown business.
Questions were raised about whether the measure would set a precedent. At least one other business -- Sony DADC, when it was known as CBS Records -- has received some kind of tax relief in the past.
"This is a step we need to take," said Councilman Mike Batten, who recommended a measure that would consider abatements on a case by case basis. "We need to put faith in our town."
The council discussed giving tax relief in the form of a five-year abatement program that would bill the theater incrementally -- zero taxes due in the first year with 20, 40, 60 and 80 percent of the total due in the remaining years of the program.
If approved, tax relief for the theater would begin in 2007.
Owner Peter Slack said the taxes on the building, which he purchased for $303,000 at a sheriff's sale earlier this year, are about $12,000 a year.
Slack, who runs a medical publishing company in West Deptford, invested an additional $400,000 to reopen the 80-year-old theater, which closed in March 2005 when the previous owner ran into financial troubles.
From the onset, Slack has said that he purchased the theater to get it back open and help spur downtown revitalization. He mentioned the abatement in a meeting with the council in July where he announced plans to organize the theater as a for-profit business to expedite the reopening.
"There's a huge investment there," said Councilman Mike Capelli Monday. "If someone is going to be willing to step up and spend some money, it's something we need to consider."
Solicitor William Rozanski said tax breaks like the one proposed are typically given to businesses in municipalities that have established redevelopment zones. Glassboro, for example, agreed to a five-year abatement with Pennsauken-based developer D'Anasastio Corp. for a townhouse project proposed in its downtown redevelopment area last year.
Pitman is considering the establishment of a redevelopment zone in the downtown.