Incentives could revive Wilson's downtown

WILSON -- Dr. Lindsey deGuehery can see the bright neon lights, people buying popcorn and movie tickets and a renewed interest in nightlife in downtown Wilson.

Two years ago, when deGuehery bought the former Carolina Theater on Tarboro Street, he saw the business as a catalyst in the revival of downtown.

His plans for the theater are unique for Wilson. There will be three movie screens, concessions that include beer and wine, and movies that couldn't be seen at theater chains.

"I think downtown would bloom around this project," deGuehery said. I think it would be really cool for the city."

But there are challenges.

Renovations to the 12,300-square-foot, two-story building could cost up to $1.3 million before the building could be opened to the public.

Encouraging investment

The cost of renovating downtown buildings not upgraded or maintained may be an obstacle to downtown development, said Jay Hood, president of the Wilson Downtown Development Corp.

WDDC wants to work with city leaders to develop a financial incentive package that could help business owners offset some of those costs.

"This would be an incentive to encourage people to invest and take that risk and spend that kind of money for redevelopment," Hood said.

City officials and WDDC members are still discussing the details, but a proposal could go before the Wilson City Council in the next few months, Hood said.

An incentive package would involve assessments of a property's tax value before and after renovations. Once property taxes were increased, the owner would pay taxes and later receive a reimbursement for a portion of those taxes, based on a formula that determines the overall investment in the property. The tax break could also last for several years or more, depending on how much was spent on the renovations.

The WDDC group is reviewing similar incentive programs already in place in several North Carolina cities, including Clinton, Clayton, Concord, Gastonia and Smithfield. Those plans, anywhere from months to several years old, are being used to guide the development of an incentive program for Wilson's downtown, Hood said.

The programs are providing an added draw for downtown development, Hood said.

WDDC is hoping the city and the county would agree to the incentives, which could not only raise downtown tax values but also spawn an interest in downtown development. WDDC currently offers several incentives for business owners, including facade grants, owner occupied grants, rent incentive grants, a rent grant extension program, a downtown loan pool and historic preservation tax credits.

Some business owners aren't deterred by renovation costs. Debi Luper, co-owner of the Le Doux Cafe and Bakery, spent at least $350,000 to renovate her Tarboro Street restaurant before opening. The cost wasn't a barrier, because she knew it would cost about that much to build a new building.

But deGuehery said he'd be interested in applying for any incentives the city would offer. He wants the theater approved as a historic site so he can benefit from state and local tax credits.

Still, the cost of renovating the theater isn't a main concern for deGuehery. A variety of other challenges exist: electricity costs, city building codes, hazardous materials removal, and waiting until the economy improves enough so the business would thrive.

"There's a number of things that come into play," deGuehery said. "This has to be financially viable and self-supporting. I have to look at my own capability of doing this. I have to look at my community and determine if it will succeed."

During the past two years, deGuehery has invested close to $125,000 in renovations, including a new roof.

A theater revival

The former Carolina Theater first opened in Wilson in 1930 and changed its name to the Drake Theater in 1943. In 1973, the theater closed.

When it opens, the downtown theater would offer three movie screens, one with 185 seats and two with 50 seats, and be named the Carolina Theater of Wilson. A variety of movies are planned, including new releases, classics, foreign films and others nominated for Academy Awards. Catered events could also take place in the theater, and it could be a location for community events and concerts.

Even though deGuehery could open the theater within months, he is waiting.

"We could start in a month or six weeks because we've done most of the planning," he said. "It wouldn't take us long to get under way with this. I just need to be comfortable with this. I cannot self-support the building. It needs to be self-supporting."