In 1991 the Johnstown Redevelopment Authority became the FIRST agency in the Commonwealth of Pennsylvania to use the newly authorized Tax Increment Finance (TIF) District to fund acquisition, demolition, and public infrastructure improvements for a redevelopment project. The TIF provided the means to finance clearance of slums and create a prime commercial site.
The Kernville block chosen for the district was an entrance area to the Johnstown Central Business District that was locally known as Robb Alley. Despite State and Federal assistance for housing renovations in the aftermath of the 1977 flood, the block still consisted of largely substandard rental properties owned by absentee landlords.
This Kernville block was notorious as one of the most blighted in the City. These before photos show several typical derelict structures located in Robb Alley. These multi-unit wood frame structures were built side by side and posed severe dangers to public health.
Drs. Stephen Benko and Joel Borkow, Plastic Surgical Associates, became the first to make an investment in the new block. Their actions demonstrated a confidence that permitted the Developer, Berkebile Construction, to finalize agreements for the construction of three additional businesses.
Since the first project phase, three additional businesses have built in the Kernville TIF area. Hite Electric was able to build a first class modern show room and supply center for electrical equipment, The White Star Personal Care Facility has opened a three story project and a home nursing business was established. The project is complete but additional land on the opposite side of the overpass could be cleared for a significant project.
In the summer of 1998, a Motel 6 was opened on the site, completing development of the main construction area. Relocation of the historic Myton House made this possible (see Historic Preservation).
Because TIF financing relies on the taxes paid by new construction to finance necessary infrastructure improvements, the first construction created the ability to complete each successive development. We have provided a copy of the Tax Increment Finance Law for those interested.
