Mayor Justin Taylor has responded to the issue of getting county loan money for development in a lengthy press release, which you’ll find below.
Taylor isn’t getting free money here for development. Taylor applied for a loan which he would have to pay back. This doesn’t strike me as some kind of dubious and sinister behavior. Actually, development in Carbondale is only a good thing and I don’t think the Times’ contention that he either acts as a developer or Mayor is fair. This isn’t a money for nothing (and chicks for free) situation. Maybe I’m too idealistic sometimes, but my initial thought on this project was that Mayor Taylor is spearheading growth on all fronts, both public and private. With regular arts showcases, wine festivals, Pioneer Days, and the coming Brewfest, Carbondale has been on the up and up. When I worked on John Moran’s campaign for State Rep in the 114th, I spent a lot of time in Carbondale and really came to love the city. It has a poor reputation in the Downvalley, but I’m telling you, Carbondale is doing well and Mayor Taylor has a lot to do with it. That’s why I’m excited about his potential Commissioner run.
In the following release from Taylor, he outlines what he’s done in his capacity as Mayor of Carbondale. Taylor mortgaged the family home to put up the down payment for this project. That’s a huge commitment. Here’s the money quote, “I don’t think any elected official, who is committed to their community, should be chastised for starting a business in an honest effort to create jobs and build a future.” Indeed. If there were backroom deals, if there is financial gain at the expense of Lackawannans, then I would have a problem. This is a federal stimulus loan, so it isn’t coming directly from Lackawanna County coffers. As a loan, Taylor will have to pay it back. He’s been open about the process from the beginning. He got verbal approval from the County before being denied.
In any case, here is Taylor in his own words:
After the recent passing of my grandparents, Marie & Sam Lapera, I decided the time was right to honor their memory by investing in the community that they loved so much, and of course, the city where I now have the privilege of serving as Mayor. Thus, “Lapera-Taylor Development, LLC” was born.
I write today to take a stand on an issue that recently came up surrounding a $2.3 million development project that Lapera-Taylor Development is undertaking in downtown Carbondale. I’d like to further take this opportunity to tell you why I chose to financially invest in the community in which I am also an elected leader.
As the Mayor of Carbondale, I support economic growth throughout the City on a daily basis! Some days my focus is on the neighborhoods through residential tax abatements or home rehabilitation grants, while others it may be on installing thousands of dollars in trees, new sidewalks and Victorian lighting to help solidify our Main Street corridor. Regardless of where my particular focus and support may be on a specific day, I understand the importance of revitalizing core communities, like Carbondale. That’s why I know my development project at the former J.J. Newberry building will most certainly help with Carbondale’s renaissance!
In addition, I’ve gained a solid understanding of commercial real estate through my career path, especially during my time as the Director of Economic Development in Susquehanna County. There, I focused on small-business start-ups and putting large-scale construction / renovation projects together. It was my job to match willing developers with stable business tenants – who would retain and create family-sustaining employment. There is no doubt that the Newberry building project would also accomplish both of those goals!
After reviewing several building options in the downtown with a potential tenant, including the building in question, and having no luck finding a suitable space or a willing owner / developer to renovate for this client, it was at that point that I very honestly and openly approached the tenant’s management with the possibility of me attempting to put together a turn-key package for them. In addition, I fully disclosed this new private venture and the potential client with the members of Carbondale City Council – who appreciated my ambition to attempt a large project in downtown.
I began by putting my skills to work on my own time, outside the normal business day – doing extensive research on construction costs, talking with other property owners to secure parking, and talking with different banks. At the time, I never imagined that the project would balloon into a $2.3 million development, but I understood that if the community lost this particular tenant – with over 300 full-time / part-time / fee-for-service employees, the results could be devastating.
One of the most significant hurdles for me to overcome was the financing of the project. As many new start-up and small businesses know, today’s banking climate is prohibitive for growing your business, which in turn is stifling our economy. A $2.3 million dollar project now requires a 25% down payment by a developer ($575,000 in cash). In order to get this project funded, I like many other small business owners had to personally guarantee the financing through family assets, including home-equity loans on my residence and collateralizing stocks and CD’s previously held by my grandparents. So, I’ve taken a huge financial risk to fulfill my passion for growing a strong, more vibrant downtown in the city that my family and I love to call “home.”
I’m confident that the people of this area realize that economic development in small communities, like Carbondale, is certainly not easy. But the redevelopment of the Newberry building on Main Street not only benefits Carbondale, but the entire upper valley. The “trickle down” effect of increased foot traffic along the Historic Route 6 corridor spreads to local shops and businesses, as well as their local and regional suppliers. This project will also inject thousands of dollars into governmental entities, such as the City of Carbondale, the Carbondale Area School District, Lackawanna County and the Commonwealth of PA.
Another great project slated for downtown Carbondale is the $14 million dollar “Pioneer Plaza” Hotel / Conference / Retail center on South Main Street. This venture by Daniel Siniawa & Associates will also inject tens of thousands of dollars into government coffers through real estate taxes, sales tax, and most importantly, the wage tax from the 130+ new employees that will be hired to operate this facility. This project is monumental in that it is the largest, commercial development on Main Street in the City’s history, and it’s the 1st new commercial building constructed on Main Street since the 1970’s.
At a time when the business atmosphere on “Main Streets” throughout America is struggling at best, Carbondale’s Main Street is coming to life! Our downtown will be forever changed by the infusion of over 430 additional people working on Main Street, and an average of about 50 individuals utilizing overnight accommodations on a daily basis. These two (2) projects alone will increase the average daily foot traffic by more than 10%. While 10% may not seem like a large number, most small cities across the county are facing double-digit daily population declines.
While working to develop both the Pioneer Plaza project and the Newberry project, many doors have been shut in the face of transforming Carbondale. And at the same time we have been forced to change the way we think – to find the open windows that will allow us to move the City of Carbondale forward. In my case, that entails putting my personal and financial well being on the line. Furthermore, I don’t think any elected official, who is committed to their community, should be chastised for starting a business in an honest effort to create jobs and build a future.
Its very clear that both of these projects could have benefited greatly from the low-interest loans through Lackawanna County, however they WILL go on, and in the end, Carbondale, Lackawanna County and Northeastern Pennsylvania, as a whole, will be a better place – with a stronger quality of life and an even stronger foundation for future economic growth.
Justin M. Taylor
