News

Flood recovery

November 10

Pa. official tours Shickshinny

Gaming money may follow after vote today on allocating $4M in revenue for low-interest loans.

By Steve Mocarsky smocarsky@timesleader.com
Staff Writer
Steve Mocarsky on Facebook   |   @TLSteveMocarsky on Twitter

SHICKSHINNY – A state official who today will likely vote on an application to use state gaming revenue to help flooded-ravaged businesses recover got a chance to see some of the hardest-hit businesses firsthand.

C. Alan Walker, acting secretary of the Department of Community and Economic Development, went on a tour of Shickshinny’s business district Wednesday morning with elected borough and state officials.

“It was depressing and uplifting at the same time,” Walker said of his visit.

Of the 28 businesses operating before the flood, only two are open. Most are remodeling.

“The spirit here is really incredible. They definitely have a can-do attitude,” Walker said of the merchants he met. “They could throw up their hands and say, ‘I’m done, just give me a government (buyout) check.’ But these people want to bring their town back.”

Walker and six other members of the Commonwealth Finance Authority will have the chance to help business owners from Shickshinny and other flood-stricken towns do that, said state Sen. Lisa Baker.

The authority is considering a proposal to allocate $4 million in tax revenue from slot machine play at the Mohegan Sun at Pocono Downs casino to provide loans of up to $100,000 at an interest rate of 1 percent for five years.

“I think this tour helped give him a true understanding of what communities need to bring businesses back,” said Baker, R-Lehman Township.

State Rep. Karen Boback, R-Harveys Lake, said paperwork for a Small Business Administration loan is “astronomical,” and interest rates of 4 to 6 percent don’t really help merchants.

“Let’s face it,” Mayor Beverly Moore said, “you could get a better deal at the bank, if our bank was open.”

Jessica Demko was one of the merchants Walker met.

Demko, 38, and her husband, Andy, 46, opened the Country Joy gift shop about five years ago. Using their own money, they began rebuilding the store three days after flood waters subsided.

“We have flood insurance. Unfortunately, we haven’t seen any of it yet. … This is our only income. We’re at the point now where we need flood insurance money to continue because we’ve exhausted all of our own,” Demko said.

Demko said a 1 percent loan “would be helpful. But again, do you know if you qualify? How intense is the paperwork? I’m just not sure.”

In the meantime, the Demkos continue to do the work they can with the little money they have left to pay for it.

“This is the time of year where we make our money, during the holidays. So now, I just need to be open, and that’s what we’re trying to do,” she said.

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