The town of Burgaw has begun levying a municipal service district tax on its downtown properties to further revitalization.

The 10-cent-per-$100 tax will collect about $7,800 this fiscal year, according to the town’s website. Pender County’s reappraised values, which take effect in fiscal 2027-28, would increase the district’s taxable value from $7.8 million to $16.2 million and generate an estimated $16,000 annually at the same tax rate.

While downtown also benefits from general fund expenditures, the municipal service district (MSD) “is a way of having some additional money that can just be spent downtown,” Burgaw Mayor Olivia Dawson said.

The MSD revenue comes from property owners within the district and is restricted to eligible capital improvements and long-range needs benefiting the district. According to the town, the district contains 72 nonexempt parcels with a combined taxable value of about $7.8 million.

Potential uses the mayor identified include improvements to roads, sidewalks and green space, such as upgrades at Dees Park. Water and sewer upgrades have separate funding.

“I endorse it, though it will cost me some money,” said Johnny Westbrook, owner of Burgaw Antiqueplace.

Westbrook’s store advertises having more than 15,000 square feet of retail space.

He lobbied at Burgaw Town Council meetings both for the tax and to keep it relatively low.

“So far there hasn’t been any political fallout,” Westbrook said. “Probably because we haven’t gotten the tax bill yet.”

The tax district previously existed only on paper. The town council approved the district during fiscal year 2022-23, according to Dawson, who was elected mayor in November 2021.

This year marks the first time that the town has levied the tax, at the mayor’s urging, she said, to keep downtown’s momentum going. For example, restaurants such as Patty’s Place and Juniors Deli have recently joined popular standbys such as Burgaw Brewery and Fat Daddy’s Pizza, she said. The town also benefits from the N.C. Blueberry Festival and other seasonal events.

Dawson, who formerly served as Pender County’s tourism director, said she wants to see businesses thrive. Downtown has relatively few vacant storefronts, she added, but that has meant parking in particular has been at a premium.

Westbrook is a retired architect and former urban planner for Baltimore and Silver Spring, Maryland. He said he believes there might be room to add as many as 600 additional parking spaces downtown.

Westbrook said the spaces could be created through land acquisition, existing town-owned property or parking decks.

Much hinges, however, on long-term plans for the Pender County Courthouse. The courthouse anchors downtown foot traffic, Westbrook said. But the historical structure has had recent problems with its HVAC system, and there have been past reports of air quality concerns.

“The courthouse air conditioning system went down three weeks ago,” Westbrook said in September. “They couldn’t hold court there, and the result was absolutely nobody downtown.”

For Westbrook, the future of downtown is deeply personal. Having returned to Burgaw two decades ago, he occupies the building his father ran as a dime store, which the family acquired in 1948. He now foresees his son taking over the business.

He said the Downtown Burgaw Association, a nonprofit organization he helped form that’s focused on community improvement and supporting the historic downtown district, would likely lead the response if sweeping changes were to occur.

“The organization needs to be refocused,” Westbrook said, “but the entity is still there.”