NEW BEDFORD — For Elissa Paquette, owner of Calico women’s clothing store and president of the nonprofit Downtown New Bedford Inc., business hasn’t been the same. 

After 18 years, she’s struggling. In those early years right after arts school, rents were affordable, and she enjoyed being part of the creative community. The Star Store was open, until recently, and its closing has had a detrimental effect. In the last three months, her sales have been 20% lower than the same months during COVID in 2020, she said. 

Downtowns have not recovered, she said, and the momentum businesses had before COVID has been lost. For some business owners, and in her case, the momentum has been reversed. She said it’s discouraging and disheartening, and the Downtown Vitality Act needs to be approved. 

“Unfortunately, rents are no longer affordable to many people, and every day I hear about how the train is coming, and every day I see a new sign advertising luxury condos,” she said. “Even though people who live here are having a hard time just getting by just paying rent, these are some of things we’re seeing coming into the community, and it’s concerning to me because nobody is really talking about where this is all headed.” 

Understanding the Downtown Vitality Act

At a Town Hall-style meeting at the Co-Creative Center on Thursday during AHA Night, state Rep. Tony Cabral, D-New Bedford, the House chair of the Gateway City Legislative Caucus, said the legislation supports small businesses struggling against larger businesses that divert money away from local communities and companies like Amazon that are attractive options to consumers. 

“This legislation would create a funding mechanism to promote our downtowns, historical areas, squares, town centers and more by establishing a Downtown Vitality Fund,” he said. 

He said the Department of Revenue does not have an accounting of how much money is collected through online sales, however, so that information has to be nailed down.  

Cabral said what he has learned during his years on Beacon Hill is that nothing really happens without outside pressure and he encourages supporters of the new legislation to send comments from their heart rather than filling out a form letter to make their case for it. 

“If you wait for something to happen just inside the building, it doesn’t,” he said. “Any legislation, any initiative, needs outside-the-building advocates, and that’s how important you are.” 

Working with the Gateway Cities

Andre Leroux, director of the Gateway Hubs Project at MassINC, who works with the Gateway City officials across the state, said their focus has turned to economic development, and the legislation would provide the resources to build on the creative economy and build communities.

“Every single walkable commercial district in Massachusetts should have a district management entity taking care of it because frankly no one entity can take care of these places on their own,” he said.  

He said private sector businesses can’t go out and take care of the public spaces, the nonprofit community doesn’t have the resources, and even municipal governments don’t have the resources to take care of these spaces with the intense use that they get.  

He said all neighborhoods need to be treated equally so a public-private-nonprofit partnership needs to be created so all stakeholders can come together and play a part in the decision-making, raising the resources and carrying out what’s needed to take care of those places. He said the state needs to step in. 

Leroux said the answer to the question, how much are they asking for, unfortunately cannot be answered because the DOR does not distinguish between online and in-person sales when businesses submit their sales tax information. 

He said the portion of online sales taxes that are eating into small local business communities should be reinvested in those business communities. 

Adding more local voices to the cause

MASSCreative Executive Director Emily Ruddock said supporters can add to the local voices advocating for or endorsing the bill as an organization, business or individual by submitting written testimony to the committee until Feb. 7.  

She said a community input session on the Downtown Vitality Bill a year ago as part of MassCreative’s legislative agenda focused on the biggest pain points members of the creative sector are feeling and the role that downtowns and artisan communities play in making communities great. 

The bill would take 5% of all online sales tax collected in Massachusetts and create a Downtown Vitality Fund that would be used to provide grant funding for downtown investment, business improvement districts, cultural districts, main street associations and parking benefit districts. 

Mayor Jon Mitchell said he supports the legislation for its commitment to the arts community in New Bedford and across the state and getting projects off the ground as well funding for cultural institutions in the city through the American Rescue Plan Act because art doesn’t happen automatically. 

“They are all small businesspeople, they are all entrepreneurs and go project to project, and we want to make sure that people are getting the support they need to actually continue to do great things that enrich our lives here and also generate economic activity,” he said.  

As for the housing situation in New Bedford, he said the cost of housing has climbed, particularly in the last three years, and it’s the case across the country. He said the city’s new housing plan and with construction underway, new units are being built. 

Fall River director calls it a ‘beacon of hope’

Ashley Occhino, executive director of the Fall River Arts and Culture Coalition, said as a city steeped in cultural richness, Fall River has a rich tapestry of arts and creativity thanks for contributions from local artists and cultural organizations, but there is more to be accomplished. 

“In Fall River like many other cities around the Commonwealth we confront the challenge of having no direct line of funding for arts and culture, and because of that, this Act is a beacon of hope for cities like Fall River,” she said. “It will give us the injection that we need.”  

She said the legislation would have a substantial impact in Fall River when it comes to supporting businesses and getting them back on their feet after COVID. She said it’s also important for the growth of tourism in Fall River. 

“We really envision a downtown that not just survives but thrives, and we’re not quite where our vision is, but having the Downtown Vitality Act really does seemlessly align with our vision and our creative economic development plan,” she said.  

New Bedford Whaling Museum Director of Museum Experience and Community Engagement Jennifer Zanolli said she advocates for any interests that benefit visitors and said the Act will help New Bedford reinvest in the heart of the city. 

“It is only through the support of programs like the Downtown Vitality Fund that we can ensure that downtowns like New Bedford will remain a thriving place not only for us today but for generations to come,” she said. 

Standard-Times staff writer Kathryn Gallerani can be reached at[email protected]. Follow her on Twitter: @kgallreporter. Support local journalism by purchasing a digital or print subscription to The Standard-Times today.