Residents could get $ 100 gift cards

Proposal would support businesses

WEST CHESTER » It might be like finding a $ 100 bill. Where to shop or dine if you were offered $ 100 to spend at borough businesses?

In light of the ongoing global pandemic, former candidate for mayor and man about town, Kyle Hudson, floated a plan to establish a gift card program that would give all permanent borough residents $ 100 to spend at participating, independently owned borough merchants.

Hudson wants council to enact the program in November. He introduced the idea at Wednesday’s Smart Growth Committee meeting and the proposal will be included on next week’s Borough Council work session agenda.

The borough price tag runs about $ 1.8 million.

“We may not have much of a downtown in the spring,” Hudson said. “It’s a lot of money, but I believe it is an absolutely necessary step to take to ensure our thriving downtown survives.” But how to pay for the program? The borough holds about $ 8 million in the Capital Operating Reserve Fund, or what some call a “rainy day fund.” Council has guarded those savings and has proposed a property tax increase for the 2021 Budget rather than touch the reserves.

“Councilman ( Bernie) Flynn often refers to our rainy day fund,” Hudson said. “If you look around, it’s pouring and people are drowning.

“It’s time to break the glass and help people and businesses get through this.”

Hudson wants the stimulus payments to create a permanent change in shopping and dining habits.

“We do have the possibility of providing a jolt and changing people’s purchasing behavior to work toward something sustainable,” Hudson said. “This will keep a stream of consumers heading into downtown through the end of the year.”

Hudson proposed that the program would be optional for only businesses that choose to participate. Every permanent resident over the age of 18 would be eligible for a $ 100 card.

Hudson suggested tapping the reserve fund for $ 1.8 million, with a small set- up fee, per location. This would be a one- time fee and there are no processing fees.

Census figures show that 20,029 people live in the borough, though not all are permanent residents. 10.3 percent, or 2,063 residents are under the age of 18, making at most 17,966 residents eligible.

Cards could be distributed by email and used via a smartphone, with IDs and proof of residency checked.

Hudson expects that employees and businesses might take their income and profi ts and turn around and buy in the borough.

“If we can get people into the stores downtown and into the habit of spending local, that money can keep coming back,” Hudson said. “So if we can use this as an opportunity to encourage local spending and capture even half the money that people get – up to possibly $ 4 million in economic value – at the very least we will almost double our investment.”

Hudson stressed that the program should be instituted this month.

“We may not have much of a downtown in the spring,” Hudson said. “It’s a lot of money, but I believe it is an absolutely necessary step to take to ensure our thriving downtown survives.

“We have the technology and the funds to do this; all it takes is political will.”