When it comes to government and small business, the track record is not good. Our businesses are overburdened by taxes, regulations and red tape. Government tends to make it harder to do business, especially in an era of shrinking profit margins and increased competition.
My policy has been “less is more.” The less government gets in the way of small businesses, the more opportunity and capital those businesses have to work toward profitability and success. Our job as elected officials is not to micro-manage business development, but to provide an economic environment where businesses can thrive. We do that by managing the town well and keeping the tax rate stable. A well run town will attract and retain well run businesses.
When one developer asked if we would provide tax breaks to his project, my response was, “We haven’t raised taxes in five years. That’s a tax break for all businesses.” He didn’t get any special treatment. But he saw my logic and moved forward with the project.
There are many thriving businesses in the township. As the hub for county government, the home to the region’s only medical center and a location that transverses two major state highways, Middle Township has much to offer to aspiring entrepreneurs and existing business owners. Yet in both of our established business districts, we see empty and underutilized commercial properties, land that has been vacant for many years and existing properties that have not aged gracefully. These conditions combine to drive down the property values in these areas and discourage business expansion and the opening of new business ventures.
So, perhaps the time has come for local government action that could foster and encourage the expansion of small businesses. By offering targeted tax abatements and incentives, Middle Township can enhance the environment for responsible, quality business development.
At a Special Meeting of Middle Township Committee on Sept. 20, attended by members of our Planning Board and Economic Development Council, attendees heard and commented on a proposal drafted by the council to establish areas in need of rehabilitation within the township. Commercial development in these designated areas, mainly along the Route 9 and Route 47 corridors, would be eligible for an abatement of property taxes. The tax abatement would be only for new development or improvements to an existing property. This would ensure that we see no reduction in the established tax base.
Eligible properties in these areas in need of rehabilitation would pay no property taxes on the assessed value of their improvements in the first year. The property owner’s payment would escalate gradually over a five year period until they were taxed the full amount beginning in year six.
The goal of the project is to entice business development and improvements in existing commercial properties, and concentrate new development in the long-established business centers in our community. This approach would both create economic synergy in our downtown and Rio Grande areas, while discouraging the type of urban sprawl that could jeopardize the historically rural nature of Middle Township.
Striking the proper balance between commercial and residential ratables is one of the keys to maintaining a stable tax rate. Responsible commercial development increases property values and creates jobs for our residents, without taxing municipal services or adding students to our school system.
This initiative is worth pursuing. I thank the Economic Development Council for their forward-thinking approach and their hard work. I look forward to important input from our Planning Board, as we move into the next phase of developing a plan we can submit to the state for approval.
What do you think? We want to hear your voices.
There will be an opportunity to hear more and share your ideas at 7 p.m. on Tuesday, Oct. 3 at Middle Township Town Hall. Come on out. Together, we can build a better Middle Township.
Learn more on Facebook @ Tim Donohue for Middle Township, or email donohueformiddle@gmail.com.
Paid for by Donohue for Committee – 21 Acorn Lane – Cape May Court House, NJ
