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photo by: Eric Ayres
Tara Kobasko of The Belgian Waffle Shop addresses members of the Development Committee of Wheeling City Council Tuesday.
WHEELING – City officials in Wheeling on Tuesday night outlined details of a proposed incentive package being designed to help several downtown businesses impacted by the massive Downtown Streetscape Project.
Representatives of those businesses attended a meeting of the Development Committee of Council, which met Tuesday night prior to the regular city council meeting. City Manager Robert Herron presented a proposal that would provide multiple approaches to help affected businesses along Main and Market streets in the downtown area.
Although the Streetscape work is a sprawling $32 million West Virginia Division of Highways venture, the city has been a big proponent of the long-awaited project. The project is currently in full swing with sections of sidewalks and entire city blocks of streets closed throughout downtown.
Wheeling officials indicated that the city is eager to implement a program to help certain businesses – many of which have customer bases that have dwindled because of accessibility issues related to decreased foot traffic, lack of available parking and implementation of road closures and motorist detours away from their businesses.
The proposed relief package would not only provide for a parking validation program, but would also provide additional Business and Occupational Tax relief for impacted, eligible businesses and set up a fund that would offer lost revenue recovery for negatively impacted businesses.
“It would be applicable to small retail businesses with under $1 million in annual sales,” Herron said. “It’s estimated that there are 21 existing businesses that would qualify for this program.”
Herron said those businesses operate in the affected area of the Streetscape construction along Main and Market streets and their impacted connecting streets between 10th, 12th, 14th and 16th streets.
For the lost revenue proposal, the city would set aside a total of $300,000. The city would use previous sales figures for each business in either 2019 and 2022, whichever year saw the higher revenues, to determine how much revenue is being lost. The funding source is yet to be determined, Herron said. That issue will likely go before the Finance Committee of Council.
“The idea there was to avoid the COVID years,” Herron explained of the two sample years selected. Lost revenue allocations could be for 12 to 18 months at up to around $555 per month.
Looking from Jan. 1 through July 1, 2025 – up to $555 for 12 months, with a possible six additional months.
Two-hour free validated parking is also being proposed for the Intermodal and 10th Street parking structures, as well as two hours of free on-street parking where meters do not exist in the Streetscape area.
“Currently, the meters have been pulled on the majority of Main Street and parts of Market Street,” Herron said.
For B&O tax relief, the proposal calls for 100% for the quarter in which the street is closed in front of the applicable business and 50% for the duration of the project, which would extend out to July 1, 2025.
“The estimated impact to the city budget would be about $12,000 per year for this program, and for the entire scope of the project – this is just an estimate based on street closures – would be about $27,000,” Herron said. “The average impact on businesses would be about $500 of savings in B&O tax – $1,250 during the project period, and it would be retroactive to July 1, 2023.”
Most affected businesses already are receiving a downtown B&O credit.
The proposal presented to the Development Committee will be forwarded to the full city council during the next meeting for consideration and possibly a first reading of legislation.
Officials agreed that the lost revenue formula needed to be adjusted for new businesses – such as The Belgian Waffle Shop on Market Street – that would not have sales records from the previous years. Herron indicated that they would certainly want to implement a separate formula so that new businesses would also have lost revenue relief.
“The tax breaks are great, but how do we survive now?” asked Tara Kobasko, owner of The Belgian Waffle Shop. “We’re all trying to help each other, so now we’re all just coming to you to ask if you can help us a little bit more.”
The city manager said the city is also working on new signage to show where sidewalks are open and working with Lamar Advertising to post the latest details about Streetscape project developments. City officials have been in touch with the state and with the project general contractor, Triton Construction of St. Albans, about improving communication issues about the work.
“We have spoken to both DOH and Triton about improved communication and planning so we are all not surprised when a street is closed,” Herron said. “We are addressing the issue of communication. We’ll do the best we can to assist in that, recognizing that ultimately DOH does make the decision on when work is done and how it’s sequenced, but I do feel as though they are open minded to additional communications.”
A portion of Market Street by the Plaza on Market is currently closed, but accessible to local traffic. It’s been converted to somewhat of a cul-de-sac, with access for motorists to travel the wrong way on what was traditionally a one-way street between 11th Street and the new detour access from Lane 7. That way motorists can access Taqueria 304, Mmm…Popcorn and other impacted businesses there.
City officials proposed that the portion of Market Street on the other end of the storm sewer separation work and related street closures – in the block between 12th and 14th streets – be partially opened to allow for similar cul-de-sac style access. Herron said that proposal is being explored by the DOH and the contractor for the lower part of Market Street.
Vice Mayor Chad Thalman noted that one local company is implementing a punch-card program with prizes associated with it in order to incentivize patronage among its employees to the impacted businesses. Councilwoman Rosemary Ketchum suggested dedicated parking spaces for certain businesses similar to the effort that was implemented during the COVID-19 pandemic.
Councilman Dave Palmer noted that negative publicity and social media posts actually drive people away from Wheeling, while it’s been proven that those who are projecting positive outreach – despite their frustrations – are seeing the benefits. Councilman Ty Thorngate said the city could help with marketing and promote efforts like “money bombing” impacted businesses to encourage patronage blitzes during the holidays while the relief proposal makes its way through city council.
“Whatever we can do to improve our communication with contractors and subcontractors is a good start,” said Councilman Jerry Sklavounakis, who works downtown.
Mike Carl, whose family owns the newly renovated building that houses the Bridge Tavern, noted that his corner of town has been impacted by the project on numerous occasions for long periods of time since it began.
“We know it’s important, this is really an important project for the city of Wheeling,” Carl said. “This everything-all-at-once approach is just a nightmare. There has to be a sequence of events to maintain operations in downtown Wheeling, because right now, it’s affecting commerce – which is affecting taxes.
“We’re getting ready to suspend lunch because you can’t even get to my building,” he continued. “Every corner is broken up, and they have to cross in the middle of 10th Street. There’s no signage. There’s no lights. It’s actually really dangerous.”
Carl stressed that communication is key to moving forward and keeping the city and the businesses on the same page.
Wheeling Mayor Glenn Elliott also works and lives in the middle of the construction zone. He said he has personally talked to several of the affected business owners in recent weeks.
“I know these are tough times for you,” Elliott told the business representatives Tuesday night. “While we all anticipated that this project was going to be impactful, I don’t think it was until we saw the work taking place on Main and Market street at the same time that began to see the massive scale of the impact.”
The mayor said he has heard a number of people mention that they simply avoid downtown Wheeling because of the massive construction.
“This is not the time that we should be turning our backs on our downtown businesses,” Elliott said. “I think we have to get the message out that you can still get there. If we can help spread that message, we’ll do what we can. But I also think it’s imperative for all of you to not just talk about how hard it is to get there but propose ways for people to figure out how to get there.
“I feel for you. I see this project from my front window every day. It continues to amaze me – the size and scope of this project.”
Elliott said the city worked for many years to make the Streetscape project happen, and now it’s happening.
“It took them 40-plus years to get them in the condition they were in, and it’s going to take another 18 months to get them out, but when it’s done, it’s going to be something spectacular,” Elliott said of the downtown streets, thanking the downtown business owners for the investments they’ve made into the city and into being a part of Wheeling’s future. “I want to see all of our businesses not only survive this period but thrive in the years ahead.”
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