Published Wednesday, January 15, 2003
crippled, critic says
Herald Staff Writer
The latest Act 47 recommendation put in motion has some Greenville residents riled.
Council voted to advertise an ordinance raising the fee on any coin-operated "amusement device" -- pinball machines, video games, pool tables and juke boxes.
Under the ordinance, the fee business owners pay to have the machines in their establishments will quadruple from $50 to $200 per machine per year.
Raising the fee is mandated by the state Act 47 plan for Greenville's economic recovery.
Act 47 is Pennsylvania's program for financially distressed communities. The borough faces a deficit of more than $1.2 million, the result of misspent bond money and mismanagement.
Resident Bill Allen, who applied for an open council seat that was filled Tuesday, said the new ordinance would cripple businesses.
Allen said he had a couple of the coin-operated machines in his business at one point. He said each machine can cost up to $3,000, and many businesses have machines that are placed by outside companies. Profits must be split with the company that owns the machines, and he said the average business owner might get $15 to $25 per week in profits.
"That is a ridiculous amount of money," he said. "It might take two or three months just to pay off the licensee fee."
The new ordinance didn't sit well with Erik S. Bielata, executive director of Greenville Area Leisure Services Association.
"We wouldn't be able to afford the license fees," he said. "It would cost us up to $1,400 just for the fees."
Bielata said GALSA offers pool, air hockey and pinball machines at the Recreation Center. Many kids, especially during the winter months, take advantage of the machines.
"It keeps them off the streets," he said. "Without those machines, there wouldn't be very much for the kids to do at the Rec Center."
The machines, which are owned by a Youngstown company, bring in about $75 to $100 per month for GALSA, he said.
Other people expressed concern about local clubs and bars losing revenue and customers if they remove the machines because they can't afford the fee.
Melinda Slavic, who belongs to several Greenville social clubs, said one club offered coin-operated games to children on "family days."
"Without those games, the kids would be in the streets," she said.
The motion to advertise the ordinance passed. If council approves the measure, it will go into effect in late February.
You can e-mail Herald Staff Writer Amanda Smith-Teutsch at: ateutsch@sharonherald.com