Pottstown council hears mixed reaction as BID process moves forward after 17.6% objections

Borough staff told the Committee of the Whole on May 7 that the process to form a Business Improvement District (BID) in downtown Pottstown may proceed after a 45-day objection period produced 52 qualified letters of objection, representing 17.6% of property owners in the assessment area, below the 40% threshold required to defeat formation under the Bid Act.

The report to council said that because the number of written objections fell short of the statutory 40% needed to block the BID, council may choose to adopt an ordinance creating the BID and enter into an agreement with a management entity if it wishes to proceed. Counsel outlined the next legal steps that would be required if council authorizes staff to move forward.

Why it matters: A BID would levy assessments on property owners in the designated area to fund downtown services and improvements. Supporters say it will help marketing, safety, and façade work; critics say outreach to small, locally owned businesses was insufficient and that formation could impose new costs without clear small-business buy-in.

Manager Keller and borough staff framed the legal and administrative requirements. Justin (borough staff) reported the count and percentage of objections. "We received 52 qualified letters of objection, bringing the total objections to 17.6% in the proposed BID assessment area," he said. Counsel (Matt) explained statutory details including the required minimum five-year initial term for a BID and the need for an ordinance and management agreement if council chooses to establish the district.

Several council members commented that the BID concept itself can be beneficial but criticized the way it had been marketed and said the borough should secure stronger participation from small business owners before final approval. One councilor said the BID was intended to help downtowns compete with malls and pledged oversight if the district is created. Another council member said she found no small businesses who supported the initiative after door-to-door outreach and urged restarting outreach and better transparency.

Public comment included two downtown business owners who said outside investors have helped reduce vacancies and that a BID could be a useful start, while other commenters and at least one council member urged more inclusive engagement with small-business owners before council takes a final step. Council agreed to list the item for further discussion at the council meeting on Monday.

The meeting did not include a formal motion or vote on creating the BID; staff recommended that, if council wishes to proceed, the solicitor be authorized to prepare and advertise an ordinance and the draft management agreement for council consideration.

Avenues ahead: If council authorizes formal action, staff said the borough would post and publish the ordinance, negotiate a management agreement, and the BID would be created for a minimum five-year term under the statute. The borough’s role would likely include ministerial filings related to assessment liens while the BID management entity would handle assessments and enforcement per the draft agreement provided with the agenda.

Ending: Council scheduled further discussion of the BID at the upcoming Monday council meeting; no ordinance was adopted at the May 7 Committee of the Whole meeting.