You are currently browsing the monthly archive for February 2011.
Monday night the CC is getting together with the Grand Traverse County board, the board of Northwestern Michigan College, the Cherry Capital airport, and several local townships to talk about Next Michigan – a new law allowing local regions to form their own economic development authorities. The meeting is at the Oleson center at NMC.
Next Michigan is a new law focused on recruiting and retaining certain kinds of business. The law focuses on the types of businesses who engage in multi modal commerce – manufacturing companies and supply chain businesses. By multi-modal commerce, the law means some combination of rail, highway, shipping, and air. The idea is to foster development and expansion of these types of businesses near transportation hubs – in our case, the airport.
Next Michigan allows the creation of 5 Next Michigan Development Corporations, which are essentially regional versions of the Michigan Economic Development Corporation. Thanks to former Senator Jason Allen, one of these must be located north of US-10, basically leaving, TC, Alpena, and Marquette as the primary contenders.
If the state approves an application, a Next MI development corp is created by interlocal agreement. It has the authority to engage in tax increment financing, or TIF, in the area around the transportation hub in the same way the DDA does in the downtown district. It can create up to 12 virtually tax-free renaissance zones. It allows the creation of an industrial development district for the abatement of personal property taxes for local industry.
There are other incentives and benefits for the targeted industries as well. A good resource is the Senate legislative analysis of the bills: http://www.legislature.mi.gov/documents/2009-2010/billanalysis/Senate/pdf/2009-SFA-1079-S.pdf.
I like the focus on regionalism, and on businesses that make things and sell them out in the world. Often these days, talk of the TC economy is dominated by platitudes about placemaking and localism. While these things are important, they are only a part of a much bigger picture. To build a sustainable growing regional economy, we also have to sell goods and services to areas out of our region. Next Michigan certainly focuses on that goal.
On the other hand, the details of Next Michigan beg several questions. -
- Do we need more tax free renaissance zones in the Grand Traverse region (in addition to one that we already have)? Where would we put them? What would be the impact on future revenues to local units of government?
- A big part of the focus locally seems to be on the positive impact this would have on Cherry Capital Airport and NMC’s skilled trades programs. Yet the issue of payments in lieu of taxes (PILOT) has not so far been flagged. The airport and NMC absolutely are essential components of our community. But if we are going to subsidize their success with staff resources, board member time, and tax incentives and renaissance zones, it seems like we should be talking to them about helping to support our success too.
- We have industrial development districts now. We have had no problem creating them, and the industries working with our TC Chamber have had no problem identifying these opportunities and bringing requests forward to the city.
- The Governor’s budget proposes to generally get out of this kind of approach to business -
The Corporate Income Tax will also eliminate the practice of picking winners and losers via the old system of tax credits and deductions. Michigan is projected to forego almost $2 billion in revenue for these tax preferences in fiscal year 2013, which represent spending done through the tax code and not the more transparent appropriations process. Under the Corporate Income Tax, business credits for brownfield re-development, the Michigan Economic Growth Authority, Next Energy, advanced battery, film, renaissance zones and others are eliminated. Governor Snyder’s plan honors the existing commitments made to businesses through signed agreements under the old tax structure, which total $500 million in fiscal year 2013, and it stops the practice of appropriating money through the tax system moving forward. Instead, economic development incentives will be awarded through the appropriations process and reviewed for effectiveness.
Much of the Next Michigan program looks like it’s geared towards an economic development model that the Governor’s budget expressly (and I’d argue, convincingly) rejects. A model that – if the Governor holds serve against all the current special interest clamor – will become an artifact of the last decade.
TC has an industrial council (I’ve met with them), and they mostly ask for a lower general tax rate. At least as of now, they have not weighed in on this new proposal – though they may. If our best economic development strategy is more like the Governor’s – maintain service and infrastructure levels while reducing overall tax and regulatory burdens – maybe we ought to devote our time and focus to that.
I’d appreciate thoughts on this – we want to take advantage of opportunities that become available, but we don’t want to chase something that is not consistent with our longterm vision for a successful city and a healthy economy, either.
Wednesday - thoughts about Boardman Lake Avenue, based on last week’s community meeting.
This week the city votes on a contract with American Waste for residential trash service, on whether to spend $1 million on a tunnel next to the Hotel Indigo, and on tightening its rules related to adult-oriented entertainment businesses. TCLP is also holding an open house for its strategic planning efforts, and the city is hosting a public input session on the Boardman Lake improvement district (a/k/a Boardman Lake Avenue).
American Waste
Last month the city voted to go to a single hauler residential trash pickup system, and directed the city staff to negotiate a contract with American Waste. The contract has been drafted and is ready for final approval.
The terms are $11 per month per household for a 96-gallon trash cart, weekly recycling, and monthly bulk item pickup. Budget bags instead of a trash cart, along with weekly recycling and the bulk pickup, are $6 per month plus $2 for each bag. Yard compost pickup is available at $2 per bag. The contract starts in April and will run 5 years. It will increase 3% each year, and fuel charges will kick in if diesel prices rise above $3.50 per gallon.
I voted against going this route for reasons laid out in posts below. However, the CC has spoken and it is time to move on and do what we can to ensure a successful transition.
Hotel Indigo tunnel
On Friday the Downtown Development Authority approved spending up to $1 million of TIF savings on a tunnel that would start next to the site of the new Hotel Indigo and run under Grandview Parkway to the old power plant property. Construction of the hotel is expected to start this spring. The tunnel has not been designed or engineered yet.
The DDA meeting was heated and the vote was 6-4 in favor of signing the contract. I voted in favor of doing the tunnel engineering (at a DDA cost of $42,500) but against the $1 million contract. The DDA vote was discussed here in posts below, as well as on http://facebook.com/planfortc and http://mywheelsareturning.com.
The city commission also needs to approve the contract for it to be binding. Committing to build a $1 million tunnel before we’ve designed or engineered it seems like bad government, and bad business.
The total city right of way is 24 feet wide. In that space we will need to accommodate an electric line, a water main, the walls of the tunnel, and any other necessary structures. The maximum width of the tunnel will be whatever is left over. The only estimate we have for what will be left is from the hotel’s consultant, who says 16 feet. Maybe that is correct or maybe not – we won’t know until the engineering is done. The Cass St tunnel – which most people agree is creepy and ineffective – is 9 feet wide.
The only circumstances under which the city is off the hook for spending the $1 million are if MDOT does not approve the construction of a tunnel or if the total cost is greater than $1,130,000. (The hotel is picking up the other $130,000). The length of the tunnel is estimated at around 90 feet, so the tunnel could cost up to $12,555 per linear foot. If we really do have a million dollars burning a hole in the DDA’s bank account, there are at least a dozen more beneficial ways to spend it.
Tabu Lounge
The city attorney brought some options to the CC last week for dealing with neighborhood concerns over the new Tabu Lounge at State and Union Streets. On our agenda this week are a series of steps that will not shut the business down, but will help to address the concerns.
These include restricting the hours of operation of all entertainment businesses in the downtown (not just adult or erotic themed ones) to a 2 am closing time. They also include security camera monitoring of the alley between the Union St bars and the Tabu Lounge. And we will discuss a moratorium on certain types of sexually themed entertainment activities that may or may not apply to what is occurring at the Tabu Lounge.
More info on these measures is at http://www.ci.traverse-city.mi.us/agendas/packet20110222.pdf (note it’s a 22 MB download).
Boardman Lake improvement district
From a release by the city:
The City of Traverse City is sponsoring two sessions to get public input on the west shore of Boardman Lake, including development and recreation opportunities and public investments in road and trail construction.
The first session will be held on Wednesday, February 23, 2011 with a review of the history and available information on West Boardman Lake and an opportunity for input on important issues to the community for the area. The second session will be held on Tuesday, March 22, 2011 with revised designs based on the input received in February. The results will then be shared with the City Planning Commission and City Commission for their recommendations and decisions.
The west side of Boardman Lake has historically been used for railroad and industrial operations and changes in the railroad use and available property represent a significant opportunity to provide for housing, business, and recreation. However, before any decisions are made on route and design, the City desires to engage the community in a broader discussion about the whole area.
There has been a good deal of discussion regarding the West Boardman Lake area, especially the proposed Boardman Lake Avenue and non-motorized trail development, most recently in 2004. This discussion has begun again with the possible acquisition of portions of railroad property from the State of Michigan. Combined with Brownfield funding, there is a unique opportunity for the community to determine the future of West Boardman Lake for recreation, redevelopment, and improved access.
Background information is available at the City’s website, www.ci.traverse-city.mi.us.
TCLP strategic planning
Finally, as mentioned last week Traverse City Light & Power is holding an open house Wednesday night in connection with its strategic planning. If you live in the city, it’s your utility – let them know what you think. Scroll two posts down for more info.
Memo-to DDA Board colleagues from Chris Bzdok, February 18, 2011
Subject — another way to spend $1 million of TIF
____________________________________________
A question at the last meeting was what other options we had for improving safety and character along Grandview Parkway. The packet does not contain options, so I offer this. I am not offering this as an action item but rather as an illustration.
The following does not include roundabouts. It is all from the Bayfront Engineering and consistent with the Your Bay Your Say report, as well as with the traffic engineer Ian Lockwood’s recommendations. I am not saying Jan endorses this, but I was inspired by her comments about a continuous pleasant experience all along that area.
Project area – sheets C4-B through C-8B of Bayfront Engineering, inclusive of Oak Street to the Holiday Inn (roughly the TIF 97 district). Project length – approx. 1.1 miles.
| Item | Source | Cost |
| Replace all cobra “highway” lighting with 15-foot “parkway” pedestrian scale lighting to calm traffic speeds | Bayfront engineering cost tables | $204,000 |
| Landscaping in all medians to calm traffic and control pedestrian crossing points | Bayfront engineering cost tables | $122,500 |
| Street trees along entire corridor to calm traffic speeds | Bayfront engineering cost tables (est) | $324,500 |
| Oak St enhanced pedestrian crossing | Elmwood crossing project budget (est) | $28,000 |
| Hall St enhanced pedestrian crossing | Elmwood crossing project budget (est) | $28,000 |
| Widen and cantilever Murchie bridge pedestrian underpass | Bayfront engineering cost tables | $60,000 |
TOTAL cost of this option: $767,000
DDA funds to be committed for tunnel by contract: Up to $1,000,000
Funds saved with this option: Up to $233,000
Cost of a bathhouse/restrooms building at Clinch or volleyball beach: $200,000
Three quick updates -
TCLP
First, TCLP is doing strategic planning next week. Leading up to that, and in the wake of last November’s charter votes, the board is reaching out to residents and stakeholder groups. TCLP is meeting with commercial and industrial customers today, with environmental groups tomorrow, and with the owners of the utility (the residents) next Wednesday. Here is an invitation from board chair Mike Coco.
Dear Neighbors:
The Light & Power Department Board of Directors will be holding a public open house. The purpose is to offer an opportunity for community members to provide input to the L&P strategic goal development process.Our citizen-owners will be able to provide direct feedback to our board members in a one-on-one setting. The feedback we receive from the communityassists, and will continue to assist, the Light and Power Board and staff in developing our strategic goals.
Your feedback will help us prioritize the organizations resources. We hope you will attend. Here are the details:
Strategic Planning OpenHouse
- February 23, 2011
- 5:30 to 7:00 p.m.
- Governmental Center (400 Boardman Ave.) second floor County Training Room
A summary of Light & Power’s current strategic goals is attached. If you have any questions about this meeting or other topics, please feel free to contact myself or one of your board members at any time. Each of us would be glad to speak with you.
We look forward to connecting with our neighbors on the 23rd.
Here are last year’s goals:
1. Ensure employee and public safety.
2. Acquire diversified electric generation assets and achieve 30% of our electric power requirements through renewable energy resources by 2020, as financially responsible.
3. Insulate customer rates from volatile power market prices.
4. Provide a high level of system reliability, including local generation.
5. Emphasize customer and community relations.
6. Continue to serve as a leader in sustainable energy strategies and energy conservation.
7. Promote a culture of continuous improvement throughout the organization.
8. Support economic development in the community.
Hotel Indigo tunnel
Tomorrow (Friday) at 8 am the DDA will be deciding whether to spend $100,000 on design and engineering for a tunnel under Grandview Parkway from the soon-to-be-built Hotel Indigo to the Open Space. The DDA will also be deciding whether to sign a contract requested by the hotel developer that obligates the city to spend $1 million to build this tunnel before the design and engineering occur. This is a huge waste of money that is not necessary for the hotel to be built, and which could be spent anywhere in the downtown, warehouse, or bayfront areas to much greater public benefit than a long hole in the ground located a stone’s throw from the signalized intersection at Union St to the east, and the designated crossing at Oak St to the west.
It’s also bad government. The idea that we would commit to spending $1 million of your money for something that we don’t even know what it will look like or how it will function (or what we will do with Grandview Parkway while it’s under construction) simply because an out of town developer wants us to is short sighted and could look foolish later. I hope you’ll let the DDA board know your feelings on this before we take steps we cannot reverse. You can reach DDA board members (of which I am one) here: http://www.ci.traverse-city.mi.us/boards/ddaboard.pdf
Governor’s budget
And finally, the Detroit Free Press reports that the Governor’s budget proposes tying revenue sharing to the consolidation of services by local governments, something we’ve been arguing for in this space for a while. http://www.freep.com/article/20110217/NEWS06/102170539/Gov-Snyder-s-budget-would-cut-school-city-spending-business-taxes-reduced-1-8-billion?odyssey=mod|breaking|text|FRONTPAGE.
It appears the future is upon us now.
To all who have written in about this project, thank you. Please everyone remember we are all on the same side here and all want what is best for the city.
Last night the city commission strongly endorsed the Habitat-Homestretch proposal. Those groups are proposing to build 28 single family homes, slab on grade, with one car garages. Habitat will build 10 of the homes and Homestretch will build 10, and the other 8 will be built by a private developer and sold at market rates. Habitat-Homestretch will pay the city $280,000 plus 10% of the sale price of each of the 8 private developer lots. The homes will be architecturally consistent with homes in the existing older neighborhoods.
Habitat and Homestretch have collected a large number of volunteers for their team – in areas such as architecture, development, and energy efficient construction. The homes will be LEED certified and near net zero energy – a demonstration project for a U.S. development in a northern climate.
I would suggest this project does not meet 100% of the goals of maximizing density or of return on investment for tax revenue, nor does it leave the property to remain as a park, but it is a very reasonable compromise. The only city financial contributions are first a discount on the sale price, from an appraised value of $700,000 to a sale of $280,000 plus the 10%. Thom Darga was asked about that sale price in an earlier meeting, and his response was to ask how many offers the city had received for the property that were in the neighborhood of $700,000.
The other contribution is that the homes are in an existing neighborhood enterprise zone, which provides some tax relief along the 8th St corridor but will nonetheless be revenue positive for the city because we are getting no revenue on the property now.
The city commission is expected to make a final decision on this issue either next week, or three weeks from now, depending on when a few details can be clarified.
Affordable housing.
Monday night the city talks about affordable housing, and specifically about the direction to take with the Depot property bids.
The opportunity at the Depot property was described a couple months ago here: http://planfortc.com/2010/11/21/progress-on-workforceaffordable-housing-nov-22/. The city has two bids in hand. One is from Habitat for Humanity and Homestretch to build 28 single family homes, slab on grade, with one-car garages. The other is from from the MAVCON companies, who propose to build approximately 75 apartments in a three story building.
MLUI’s James Bruckbauer offers a critique of city’s effort to date. http://mlui.org/blogs/?p=1624. It’s true that the city commission up to this point has aimed for a relatively clean sale rather than a complex public-private development model. Options include moving forward with negotiations with one of the two bidders, or having the city’s affordable housing task force study the proposals and recommend either one of them, or further marketing of the property for more residential density or a commercial-residential mix.
Budget
Also Monday night is the city’s first budget meeting for 2011. The city sits in a relatively strong position this year compared with other cities around the state, but doesn’t have money to throw around, either.
Last fall the city commission committed to a 0.1 mill reduction in the general fund levy to offset the 0.1 mill county increase approved to regionalize the senior center. Last year the city commission also resolved to hold line on employee costs (which rise about 3% per year if staffing levels are maintained) through the natural attrition of personnel. The past two years the CC has pledged at least $1 million per year for reconstructing deteriorated streets and sidewalks, and that commitment is expected to continue.
According to the city treasurer, the city could lose about $200,000 in statutory state revenue sharing this year, depending on what the Governor’s budget looks like. There are also proposals circulating in Lansing to tie revenue sharing to the consolidation of services at the local level, which could benefit Traverse City and the townships of Acme, East Bay, and Garfield if the ongoing metro fire discussions are successful.
Other potential impacts to the budget and the tax base include a small increase in property taxes (1.7%) tied to inflation. A pending analysis of the city police workload could save us some money if implemented this coming budget, and various tax appeals could cost us some money. The Act 345 millage that funds police and fire retirements goes up or down based on an actuarial finding that we do not have yet. Last year it went up 0.38 mills. We may have a modest amount of extra fund balance in the neighborhood of $200,000 as well.
One thought going forward is that we should take any net savings from all this and split it, giving half back in the form of a modest millage reduction (0.2 mills perhaps), and putting the other half into streets and sidewalks. The extra street and sidewalk portion could be earmarked for interim Division Street improvements connected to this year’s MDOT resurfacing project – street trees, sidewalk connections, pedestrian scale lighting, and the like. The Division Street steering group is back at work and hoping to have some recommendations together for this project by mid year.
Tabu Lounge
Thank you to those who have sent me emails about the apparent (and possibly unpermitted) opening of the Tabu Lounge, an adult entertainment club on State Street in the former Small Planet store space. I can assure that we take this situation very seriously, and the city attorney has been working on it at my request. Monday night I will ask the city commission to add this to the agenda, so we can have a discussion of the city’s options in dealing with this undesirable new member of our downtown community. My intent is that we will be as aggressive as we possibly can be, and I expect the rest of the commission feels the same way. Stay tuned.
- community garden at the barns
News from Penny Kriebehl, TC’s community garden pioneer:
The Urban Farming Collective is a project of Little Artshram and offers folks in the Traverse City exposure, experience, education and opportunities for networking and skillsharing with a plethora of urban-farming-grow-your-own, backyard, front-yard, perennial, forest and community garden opportunities.
The Urban Farming Collective was co-created in 2010 by a handfull of Traverse City residents working with Little Artshram’s Permaculture and Community Garden programs, the Career Tech Agri-Science Program, NMC Plant and Soil Biology Dept., and Michigan State University Extension 4-H. Soon, other community members, were also joining the discussion to create a Traverse City based network to meet the growing needs and interest in urban farming, the building of a local food system, while encouraging a lower energy lifestyle.
The Urban Farming Collective intends to cultivate and tend a growing movement of trulyresilient farming and gardening methods with “community” being a unifying force and inspiration, to offer information about new Community Garden sites, workshops, programs and events, as we continue to deepen our “perma-culture” roots, socialize, share, eat good food and encourage a local economy!
Who can join the Urban Farming Collective?
Folks of all ages and interest levels who wish to learn more about growing their own food, longtime farmers, art-farmers, front and backyard gardeners, bee-keepers and chicken farmers, folks who want to share wisdom, offer and share farming and gardening resources (including land and growing space for those without), young folks, grandparents, any one that has an interest in eating and growing local, healthy, pesticide-free food….
A kick-off event is being planned this spring, likely in April or May, 2011(date and location tba). Visit www.littleartshram.org where we will be posting updates.
Recent Comments