On the eve of a major shopping day, Monday's agenda arrived with a plan to reward people for shopping in Plainfield.
Among items to be considered at the agenda-fixing session is a resolution to support a "Property Tax Reward Program" offering rebates to property owners, tenants and even non-residents who spend at city-based businesses. The company that would run the program, FinCredit Inc., would receive 25 percent of the gross rebate. The homeowner would receive the rest as a credit against property taxes. Renters and non-residents would receive a rebate check minus a $7 processing fee.
The resolution notes the plan will require a "partnership, participation and acceptance" by merchants, patrons and the governing body in order to succeed. The biggest success story seems to be Marlboro Township, which is also billed as the first municipality to use the plan.
Although the fine print on the FinCredit web site says participants will receive banner advertising on the site, there is none so far.
In the years since Plainfield was the shopping mecca of Central Jersey, many retailers have left or gone out of business. The loss of Macy's as a retail anchor in 1992 was a major blow to the downtown economy, which is now dominated by stores offering urban wear and low-end merchandise. The Special Improvement District management holds sidewalk sales and other promotions and there are lots of shoppers, but for higher-end goods many residents go to the malls or downtown Westfield.
The Urban Enterprise Zone program here was only able to engage 105 of 731 eligible retailers and this plan may encounter similar resistance. Merchants will have to be able to swipe the cards to record the transactions for credit. Employees who speak various languages will need education on the plan. One hopes there has been some buy-in already from the business organizations in the downtown and South Avenue business districts.
Despite all these caveats, any boost to the local economy is a good thing. The resolution is only asking for support of the plan. A fiscal impact statement says the cost has been incorporated within the 2014 Economic Development program budget. It will be interesting to see what the governing body says.
The council meeting is 7:30 Monday (Dec. 1, 2014) in Municipal Court, 325 Watchung Ave.
--Bernice
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Oh my Bernice, how many times must I say this, lol, it's not the "South Ave" business district it is the NETHERWOOD business district.
ReplyDeleteUnlike the name the merchant association uses that hides from its Plainfield roots (the founder of that association has told me that the name refers to scotch PLAINS and fanWOOD), the Netherwood name has deep Plainfield history.
- Netherwood Train Station
- Netherwood Road (first ward for the pundits)
- Netherwood Post office, " " " "
- Netherwood Fire house
- Netherwood Zip Code 07062
Also on South Ave is the Netherwood Apartments, the Netherwood Bar and Grill and now the new townhouse/lofts building Netherwood Points.
Just one block south of the shopping district is the Netherwood Heights Historic District where the Netherwood Hotel was built in 1890. The original Netherwood school (now Cook school) is also in the heights.
I feel any program that promotes shopping in Plainfield is worth a look. I am happy to see folks are thinking outside the box. Lets hope that the increased density that will arise from new residential development will spur new retail establishments. Cranford and Bound Brook are just two examples where the increase in density has brought in retailers.
Let us be proud of our Plainfield roots and refer to the South ave shopping district as the Netherwood Shopping District.
Fincredit are not "folks thinking outside the box" they are financial opportunists trying to get inside the pockets of city merchants by appealing to the self interest of the taxpayers and the perceived need of the administration to "do something".
DeleteDid you see who actually pays the "property tax rebates"? The merchants. So any merchant who agrees to participate also agrees to an open ended discount - the example given was 20% - on all purchases to all who have a city-issued card.
ReplyDeleteThe program won't draw in out-of-towners because they won't have a card. (It will of course invite card sharing abuse.) It won't draw in new merchants because it's hard enough to make a buck as it is without giving up profit margin to a rebate scheme. The town doesn't make any more money; it collects the same taxes, less fees of course, indirectly.
Who benefits? Local taxpayers who shop locally make out. If the rebate is 10% and you spend $50 per week you get back $260 less fees. Not bad. Unless the merchant raises prices to cover costs like most already try to do to cover merchant credit-card fees, as much as 5%.
Oh yeah, the fees: Fincredit takes 25% off the top of everything so the $260 rebate is actually only $195. The other $65 goes to Fincredit plus any other transaction fees they can dream up. To repeat, that $65 is paid by the merchant.
So the homeowner who assiduously uses his/her card to shop locally gets less than 200 bucks a year, the merchants sell more but make no profit and the city gets to manage the cards and the marketing but doesn't actually collect more taxes.
I see only one winner and it ain't us. See a familiar pattern?
If you have a car like most property taxpayers do and need to buy clothes for the kids or a tv or a big weekly food shop or whatever you're still going to walmart, target, home depot or Shop Rite. Why? because it's cheaper (and better) even after any "rebate". This scheme does nothing to bring large or medium retailers back to Plainfield. That's the real deal not this pennies back in your pocket when you shop with us nonsense.
ReplyDeleteFYI Bernice: for the most part only Netherworlders shop in westfield.
If the downtown sold something besides cheap junk, I would shop there. I did shop there 20 years ago. No longer. I wish I could find something good besides the dollar store next to where Macy's used to be.
ReplyDeleteSounds like robing Peter To Pay Paul
ReplyDeleteHi Bernice,
ReplyDeleteIf I understand the program correctly; (The local businesses offer a discount to program participants(card holders) who shop in their stores, 25% of the discount is paid to Finecredit for overseeing the program, and 75% of the discount is applied to as a credit on the card holder's property taxes.), then it's a SCAM! The merchants are paying the money and Finecredit makes out like a bandit. It would be very interesting to know the political or financial connection between Finecredit and Jerry Green.
Tom Kaercher
Yes!!
DeleteThis sounds like a PR gimmick and a bookkeeping nightmare!
ReplyDeleteWent downtown last week to go to bakery on Front St and could not find a place to park. I do not see any other stores to shop at,and I do not need a mattress from the sidewalk stores. I do not think the discount program will work for me. If you are a man who goes to the bars and ladies of the evening stores I guess it would pay off.
ReplyDeleteIf we had shops worth anything, or restaurants, or bars, we wouldn't need this. We would just shop there.
ReplyDeleteI'm with 3:22am - no need for a mattress, suitcases, or tacky clothes.
And Appliance Arama is or is closing.
ReplyDeleteJim is 1000% on the money with the name issue. It removes all reminders of Plainfield just to sell ice cream. Plainwood should be removed and replaced with the proud and historic Netherwood name.
ReplyDeleteMy town just started one of these shop local programs with the same company and I think it is a terrible idea. I support local businesses and I don't think they should be required to take a financial hit to have me shop there. They are being penalized and it is hard enough to be a small business without this nonsense. FinCredit is the only one making money on this.
ReplyDelete