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Plan 1! Paper -
Gray, Jeffrey I. 1998

ii

 

An Evaluation of Michigan Downtown
Development Authorities as Economic
and Historic Revitalization Organizations
in Small Cities

APIanBPaper

Urban and Regional Planning Program
Michigan State University
May 1998

Jeffrey M. Gray

 

M‘

\
9 ‘ "
~. '
‘1‘
\\ " '0‘
- ~"f"
. \‘

/ AN EVALUATION OF MICHIGAN DOWNTOWN DEVELOPMENT
AUTHORITIES AS ECONOMIC AND HISTORIC REVITALIZATION
ORGANIZATIONS IN SMALL CITIES

By

Jeffrey M. Gray
I I

A PLAN B PAPER
Submitted to
Michigan State University

in partial fulfillment of the requirements
for the degree of

MASTER OF URBAN AND REGIONAL PLANNING
Urban and Regional Planning Program

May 1998

Ever-busy, ever-building, ever-throwing-out the old for the new, we have hardly paused to
think about what we are so busy building, and what we have thrown away.

— James Howard Kunstler, The Geography of Nowhere

CONTENTS

 

 

 

 

LIST OF FIGURES : - -- - - A - -_ -- v

ACKNOWLEDGEMENTS ; - - .............. _ - _______ vi

ABBREVIATIONS- 3 -- -- -- - t - - -mvii

INTRODUCTION - - ..... - - - - -- - - l
The Study

REVIEW OF LITERATURE - ...... 5

 

Impacts of Suburbanization on Downtown
Defining Revitalization
Centralized Retail Management
Nationwain Street Program
The Components of Organization
Michigan Downtown Development Authority Legislation
Establishment of a DDA
Activities of the DDA
Financing DDA Activities

RESEARCH METHODS ............................................................................................ 18

Initial Selection of Cities
Final Selection of the Study Cities
The Questionnaire

SUMMARY OF QUESTIONNAIRE RESPONSES” - - WMZS

 

Background
Widespread Support
Management
Downtown Plan

PROFILES OF THE REVITALIZATION EFFORTS .............................................. 30

Howell
Ludington
Tecumseh

FINDINGS--- ...... - - -- - - 35

 

Widespread Support

Management by One Entity With a Full-Time Staff
Downtown Plan

General Findings

CONCLUSION- - -- -- - - - 41

 

Recommended Future Study

APPENDIX I: PUBLIC ACT 197 OF 1975, AS AMENDED - DOWNTOWN

 

 

 

DEVELOPMENT AUTHORITIES ...... - - ; 44
APPENDIX II: MAPS OF THE DOWNTOWN DISTRICTS IN HOWELL,

LUDINGTON, AND TECUMSEH - -66
APPENDIX III: INTERVIEW QUESTIONNAIRE - : ..... -- -70
REFERENCES ............................................................................................................ 75

iv

FIGURES

Figure 1: Initial and Captured Assessed Values .............................................................. 16
Figure 2: Potential Study Cities ...................................................................................... 20
Figure 3: Map of the Three Study Cities ......................................................................... 21
Figure 4: Question #14 Responses ................................................................................. 28

ACKNOWLEDGEMENTS

I wish to express thanks to Mike Herman, City Manager of Howell; Mary Beutell,
Community Development Director for the city of Ludington; and Chris Manegold,
Economic Developer in the city of Tecumseh, for providing expertise and documentation
about the efforts of the Downtown Development Authorities in their respective cities.

Thanks also go to Professor Miriam Rutz for her patience and assistance as I

whittled the research down from “the world” to a small corner of it.

ABBREVIATIONS

CRM Centralized Retail Management

DDA Downtown Development Authority

HUD US. Department of Housing and Urban Development
ICSC International Council of Shopping Centers

IDA International Downtown Association

NTHP National Trust for Historic Preservation

'I'IF Tax Increment Financing

UDAG Urban Development Action Grant

ULI Urban Land Institute

UMTA Urban Mass Transit Association

INTRODUCTION

American downtowns are complex units. Once the center of activity and identity
for communities, most have experienced economic and physical decline in the wake of
suburbanization. Robertson (1995, 430) notes that “continuous decentralization has
shifted downtown functions to the surrounding suburbs, particularly since World War
II. . .In 1954, downtown retail sales still accounted for nearly 20 percent of the nationwide
total; by 1977, only 4 percent of metropolitan sales occurred downtown.”

With various studies indicating a pattern of migration back to small cities (Tyler
1987, 7-8) and the growth of the National Trust for Historic Preservation’s (NTHP)
National Main Street Program, which focuses on the revitalization of small town
downtowns, there may be reason to believe that the downtowns of small cities are on the
rebound. Communities that have succeeded under programs like the Main Street Program
have done so only after large scale economic restructuring and preservation of the
downtown structures that create a unique sense of community.

Such an effort requires coordinated action. Citizens, merchants, property owners,
and public officials must come together within a single organizational structure to set a
shared vision and direction for the downtown. Research by the Urban Land Institute
(ULI) shows that the successful downtown revitalization organization will have
widespread support, management by a body with a full-time staff, and a downtown plan.

Development of this kind of an organization can be particularly challenging in a
small city. As KOtval and Mullin (1992, 18) note, “little planning assistance is available to
most small communities. A few fortunate ones have a trained professional planner.

However, even in this enviable situation, the planning office is usually a one person show:

i

a long term resident whose hobby is planning and who is doing the best he or she can.”
As a result, most small towns lack a current master plan with defined community goals, let
alone the ability to engage in a complex revitalization effort.

Small cities are not without assistance, though. Downtown Development
Authorities (DDAs) are public bodies charged with the role of halting the decline of
downtowns. Their goal is to foster economic growth and historic preservation downtown.
Legislation such as Public Act 197 of 1975, as amended, the Michigan law enabling the
formation of DDAs, is among the tools emerging to help small towns form the

organizational structure to engage in and sustain a downtown revitalization.

The objective of this study is to evaluate the extent to which Michigan Downtown
Development Authorities (DD/is) in cities with a population of between 5,000 and 10,000
people are able to develop widespread support, management by a full-time stafi’, and a
downtown development plan to engage in an economic and historic revitalization of

downtown.

The Study

This study begins with the review of literature, which seeks to relate how Michigan
DDAs fit into the context of downtown revitalization in America. The review first relates
the forces that have historically impacted downtowns, leading to their decline. This is
included because, as Tyler (1987, 5) pointstout in his study of the health of downtown in

eight Michigan cities, planning studies often fail to consider the historical perspective:

Rather, a study will assume the current status of a downtown as ‘ground

zero,’ without recognizing that that its current state is only one point on a

time continuum. A downtown as it now exists is a product of what has

happened previously, and is also a precursor of what it will be. Without

recognizing this any analysis must be considered deficient.
That is to say that understanding why downtown failed will provide insight into how it
may be strengthened and made successful into the future.

The literature review proceeds with a study of two highly successful downtown
revitalization strategies — Centralized Retail Management (CRM) and the Main Street
Program of the NTHP. This analysis reveals the importance of organization in any
revitalization that will include economic restructuring and historic preservation. The
combined elements of widespread support, management by one entity with a full-time
staff, and a downtown plan, as presented by ULI, establish the criteria by which a such an
organization will be evaluated over the course of this study.

The literature review concludes with a discussion of Public Act 197 of 1975, as
amended. This discussion considers the procedures for forming a DDA and the structure
of the DDA governing body. As well, the revitalization activities allowed under the act
and the structure for funding those activities are considered.

The next chapter discusses the research methods employed. The criteria for
narrowing potential study cities are revealed, including the rationale for defining a small
city as having between 5,000 and 10,000 residents. This is followed by a brief
introduction to the three study cities — Howell, Ludington, and Tecumseh. The

development of the interview questionnaire, and the rationale behind question selection

and ordering, is the final topic covered under the research methods.

A chapter summarizing the questionnaire responses is followed by a summary of
the economic and historic revitalization efforts in the three study communities
Background research, including information from the downtown plans and telephone
interviews, is used to profile the revitalization effort in each city, and to understand the
role of the DDA in that effort. These chapters are followed by the summary of findings
regarding the capacity of the DDAs to develop widespread support, management by one
entity with a full-time staff, and a downtown plan. The conclusion reports that Michigan

DDAs in cities of between 5,000 and 10,000 people do have this capacity and suggests

directions for future study.

 

REVIEW OF LITERATURE

Toward the goal of placing the above described objective within the appr0priate
context, the review of literature has advanced on the following fronts: the impacts of
suburbanization on downtown, defining revitalization, the components of organization,

and Michigan DDA legislation.

The Impacts of Suburbanization on Downtown

The combined factors of uniform zoning, Federal Housing Administration and
Veterans Administration housing programs, and the “millions of additional dollars from
Washington [that were] poured into the suburban infrastructures. . drove the physical
development in the suburbs following World War II (Gratz 1994, 17; Hall 1988, 291;
McBee et a1. 1992, 3). It was the 1956 Federal Aid-Highway Act, which pledged $41
billion for the construction of 41,000 miles of new roads, that enabled the movement of
the middle-class population to the suburbs (Gratz 1994, 17; Hall 1988, 291; McBee et a1.
1992, 3). This effectively dispersed the population from the traditional retail, social,
cultural, and entertainment center - the downtown.

The impacts of suburbanization on the traditional small town downtown are
summarized by Glisson (1984, 5):

More than a marketplace, Main Street was the center of civic and social

activity, and its buildings reflected not only the town’s past but also its

pride. In a very real sense, Main Street symbolized the community’s
identity and embodied its heritage. After World War 11, however,
suburbanization drastically altered the shape of most towns, scattering
homes and businesses to outlying areas. Roads that had once led to the

center of town now canied residents and shoppers to commercial strips
and regional malls. Throughout the nation, in town after town, the story

repeated itself. Businesses closed or moved to the mall; shoppers

disappeared; property values and sales tax revenues dropped. Some

downtowns sank under the weight of their own apathy. Dingy, dilapidated

buildings, boarded-up storefronts and empty, trash-strewn streets gradually
reinforced the public’s perception the nothing was happening downtown,

that nothing was worth saving there.

With its predominant retail form being the chain store, and the overwhelming
accommodation in its built form to the automobile, the suburb has come to take on a
sameness from place to place, lacking the unique identity embodied in the traditional
downtown. This suburban condition has been characterized by Kunstler (1993) as “The
Geography of Nowhere.” In the interest of recapturing place identity and reversing the

decline of downtown, revitalization efforts were initiated throughout the United States as

early as the 19608 and have gained momentum through to the 19903.

Defining Revitalization

The term revitalization has been used in association with a wide variety of
activities and programs directed toward bringing economic growth to declining areas.
Some, like the Urban Development Action Grant (U DAG) program developed in the
19708, have focused on leveraging private investment through public investment. The
primary focus of such programs, therefore, is economic growth. Such a singular focus
may not be appropriate for the downtown also interested in restoring the architectural and
other physical elements which embody the unique identity of the place.

The term revitalization as it is to be applied in this study will be defined by
reviewing the structures of two widely successful downtown revitalization programs:

CRM and the National Main Street Program of the NTHP. Centralized retail management

has generally been applied in larger cities, such as Orlando, Florida; San Antonio, Texas;
and Grand Rapids, Michigan, while the Main Street Program has been designed for
implementation in smaller towns. Despite this, the two programs are strikingly similar in

their focus on economic and physical revitalization.

genflim Retail Management (CRM)1

In 1985, the US. Department of Housing and Urban Development (HUD), the
Urban Mass Transportation Administration (U MTA), and the International Downtown
Association (IDA), with advice from the International Council of Shopping Centers
(ICSC), the Building Owners and Managers Association International, the Urban Land
Institute (ULI), and the National Trust for Historic Preservation (NTHP), contracted to
develop a new revitalization strategy, with the goal of providing overall management of
the downtown. With CRM, a downtown organization coordinates such things as the mix
of retail establishments, hours of operation, and the physical identity of downtown so that
“‘a synergism among competing retailers results in [a downtown in] which the sum is
greater than the parts’” (Cloar, Stabler, and DeVito 1990, 3).

A pilot program including eleven cities was launched in 1985 .2 Ongoing
evaluation of the demonstration cities and a national conference in 1987 allowed for
refinement of the CRM program. By 1989, CRM was organized around the following

four principles:

 

‘ The information of this section relies heavily on chapter 1 of Cloar, Stabler, and DeVito (1990).

2 The eleven cities were Eugene, Oregon; Grand Rapids, Michigan; Hartford, Connecticut; Neenah,
Wisconsin; Orlando, Florida; Redding, California; San Antonio, Texas; Seattle, Washington; Shelby,
North Carolina; Syracuse, New York; and Tulsa, Oklahoma.

0 Market emphasis. An understanding of the market forces impacting
downtown currently and into the future is used in the formulation of the
downtown plan and in the implementation of strategies to address the needs of
customers.

0 Enlistment of all interested parties. Retailers and property owners are
brought together with other parties, which may include municipal officials and
professionals, consultants, engineers, financial institutions, and major
employers. Parties come together to form common objectives and advance
mutual interests in revitalization.

0 Coordination of both leasing and retail practices. Often difficult to achieve
as it demands detailed organization and coordination, this refers to
accomplishing the optimum mix of retailing opportunities and cooperative
advertising and promotion.

0 Management and enhancement of the total retail environment. Overall
management must further strategies to advance parking opportunities and the
overall design continuity of the downtown (Cloar, Stabler, and DeVito 1990,
5).

The thrust of CRM and these four principles is that retail and physical cohesiveness

and coordinated action in the downtown will bring beneficial returns to individual retailers.

Neg'enal Main Street Pregram

The National Main Street Program is sponsored by the NTHP. It was developed
with the purpose of providing small cities with the tools to engage in economic
development and historic preservation in their downtowns. As it has grown from the
original pilot program, tested in three demonstration cities, to a nationally recognized
revitalization strategy, the program is said to have “ushered in a new era in small city

planning” (Skelcher 1992, 15).

The Main Street Pilot Project was initiated in the cities of Galesburg, Illinois;
Madison, Indiana; and Hot Springs, South Dakota in 1977 for a three year period. In
addition to their location in the Midwest, these demonstration cities shared populations of
between 5,000 and 60,000 people. The program was designed for communities of this
size, as these were found to have been “hardest hit by the dynamics of contemporary
socioeconomic change” (Skelcher 1990, 5), that is, suburbanization.

The Main Street Program has been called “the nation’s first program to explore the
relationship between historic preservation and economic development [because it]
maintains the individuality that made downtown special while molding a secure financial
base by which to sustain it” (Keister 1990, 46). Its strategy, like that of CRM has four
elements, and is known as the Four Point Approach:

0 Design: Enhancing the physical appearance of the commercial district
by rehabilitating historic buildings, encouraging supportive new
construction, developing sensitive design management systems, and
long—term planning.

0 Organization: Building consensus and cooperation among the many
groups and individuals who have a role in the revitalization process.

0 Promotion: Marketing the traditional commercial district’s assets to
customers, potential investors, local citizens, and visitors.

0 Economic Restructuring: Strengthening the district’s existing
economic base while finding ways to expand it to meet new
opportunities - and challenges from outlying development. (National
Main Street Center 1997)

So like CRM, the Main Street Program focuses on the historic identity of downtown and
coordinated promotion and economic restructuring to enable its economic growth.

With tested success and national recognition, CRM and the Main Street Program
establish the standard in downtown revitalization. The two programs share a recognition

of the importance of strengthening the market potential while at the same time enhancing

10

the historic and physical identity of downtown. This concept of economic growth and
historic preservation acting in concert to improve downtown will be considered

revitalization for purposes of this research.

The Components of Organization

As evidenced by the components of CRM and the Main Street Program,
downtown revitalization demands sufficient organizational capacity to support the
coordinated effort necessary to achieve economic and preservation goals. The study of
downtowns across the United States by Palma (1992, 3) supports this finding: “the skillful
and professional management of downtowns will continue to be the critical element that
determines whether enhancement efforts succeed or fail.” Research by the ULI for the
Downtown Development Handbook (McBee et al. 1992, 14), which includes extensive
review of both CRM and the Main Street Program, indicates that “three features are
essential components of the organization behind [a] successful downtown revitalization: l)
widespread support, 2) management of the program by one entity with full—time staff, and
3) the downtown plan itself.”

The first feature, wideSpread support, refers to the need for a revitalization to be a
collaborative effort, “stress[ing] consensus building and greater community involvement”
(Palma 1992, 3). Collaboration allows the opportunity for all those parties, such as local
governments, chambers of commerce, property owners, retailers, preservationists, and
citizens, with an interest in downtown to be included in setting the policy for its future. Its

importance is recognized not only by the ULI, but also in a number of downtown

11

revitalization studies and programs (Palma 1992; Collins, Waters, and Dotson 1991;
National Main Street Center 1997; Cloar, Stabler, DeVito 1990).

A public-private partnership, where the public sector works with the various
private interests associated with downtown, is among the principle collaborative models.
Both CRM and the Main Street Program emphasize that the likelihood of long term
success of a revitalization effort is increased through such a partnership (Cloar, Stabler,
and DeVito 1990, 4; National Main Street Center 1997). Palma (1992, 3) goes so far as
to say that these partnerships are “essential for success.”

Management of the revitalization by one entity with full-time staff helps to assure
that the formation and implementation of goals and objectives is coordinated. Palma’s
research of downtowns found that organizations “must become institutionalized fixtures of
the business community. . .in order to survive” (1992, 4). This level of exposure increases
retailers’ and property owners’ awareness and participation in the organization. Increased
participation and awareness helps the organization to fulfill its primary responsibilities:
development of a yearly work plan, simplifying the regulatory process for downtown
retailers and property owners, management of downtown development projects, and the
provision of design and economic technical support (McBee et a1. 1992, 18). Where skills
or resources are limited, consultants may assist the organization in meeting its
responsibilities.

The final feature of the organization, the downtown plan, communicates the shared
vision for downtown revitalization. It must “reflect present community values and project

future desires, melding the community’s cultural, economic, social, architectural, and

12

geographic conditions and values. While it forecasts the future, however, it should not be
unalterable” (McBee et a1. 1992, 20).
The ULI, in fact, identifies the minimum five components that should be present in

the plan. They are as follows:

0 an inventory of existing conditions;

0 identification of problems and opportunities, with a market analysis for
overcoming problems and taking advantage of opportunities;

0 the boundaries of the plan area;

0 goals, objectives, and action plans;

0 and a description of the management and financing necessary to implement the

plan.
The ULI recommends, finally, that the plan be formally adopted by the legislative body of
the municipality. This assures that the public will have the opportunity to comment on the
plan at public hearings, and that the legislature is on record supporting its implementation
(McBee et a1. 1992, 20-23).

These three requirements, widespread support, management by one entity with
full-time staff, and a downtown development plan, form the basis in this study for
evaluation of Michigan DDAs as economic and historic revitalization organizations. It is
to be determined whether DDAs in small cities have the capacity for meeting these

requirements.

Michigan Downtown Development Authority Legislation

A DDA is a public body established by a municipality “with the twin goals to

prevent downtown deterioration and promote economic growth and revitalization” (Tyler

13

1994, 180). Public Act 197 of 1975, as amended is the enabling legislation which governs
DDAs and allows for their establishment in Michigan. Section 3(1) of the Act states:

When the governing body of a municipality determines that it is necessary

for the best interests of the public to halt pr0perty value deterioration and

increase property tax valuation in its business district, to eliminate the

causes of that deterioration, and to promote the economic growth, the

governing body of that municipality may, by resolution, declare its intention

to create and provide for the operation of an authority.
The Act recognizes that not only does economic investment help to halt property value
deterioration and promote economic growth, but so does the rehabilitation, restoration,

and preservation of buildings, structures, and public facilities in the downtown (PA 197

1975, §7 and §29).

Esgblishment of a DDA

After designating the boundaries of the downtown district, the municipality must
appoint a governing board to supervise and control the authority.3 The governing board
includes the chief executive officer (mayor, township supervisor, etc.) of the municipality
and, at the discretion of the governing body of the municipality, between 8 and 12
additional members. Members are appointed by the chief executive officer and approved
by the governing body to a term of four years. The act requires that a majority of the
board members “be persons having an interest in property located in the downtown
district” (PA 197 1975, §4(1)). Clearly, this arrangement of private interests serving on a
public body with public officials creates an environment with the potential of widespread

support and a public/private partnership.

14
A 'vi' f DDA

The activities that the DDA may engage in are listed at length in Section 7 of PA
197. These range from such specific things as acquiring pr0perties and charging rent for
their use, and accepting grants and donations to the various activities associated with
building a revitalization organization. With regard to revitalization, section 7 of the Act
allows the DDA to analyze the economic changes and metropolitan impacts on the
downtown district. As well, it allows the DDA to plan and engage in “construction,
renovation, repair, remodeling, rehabilitation, restoration, preservation, or reconstruction”
projects which the board finds will aid “in the economic growth of the downtown” (PA
197 1975, §7(c)).

Organizationally, the DDA is empowered to develop long range and development
plans “and to take such steps as may be necessary to persuade property owners to
implement the plans to the fullest extent possible” (PA 197 1975, §7(e) and §7(f)). These
plans are to be developed “in cooperation with the agency which is chiefly responsible for
planning in the municipality” (PA 197 1975, §7(c)). In addition, the DDA may enter into
contracts related to performing the activities allowed and prescribed in the Act (PA 197

1975. §7(g)).

Financing DDA Activities

The most commonly used means of funding the revitalization activities described in

PA 197 is tax increment financing (TIF). With TIF, the value of all property within the

 

3 There are, of course, various legal requirements described in the Act, such as public notice and hearing
requirements. A copy of the Act can be found in Appendix I of this study.

15

district, as indicated on the most recent tax assessment roll, is first determined.
Throughout the duration of the TIF, the revenue from property taxes paid on this initial
assessed value is directed to those bodies having taxing jurisdiction in the municipality (the
city, county, airport authority, etc). In every year after the first, taxes on the property
value that exceeds the initial assessed value, or the captured assessed value, are paid to the
DDA. Revenues from taxes on this captured assessed value can be used to pay for
projects, studies, and the like directly, or to pay back debt from bonds.

Figure 1, below, illustrates the concepts of initial and captured assessed values,

with the DDA in Anytown, USA as the example.4

 

4 The concepts of “initial assessed value” and “captured assessed value” are thoroughly defined in section
1 of PA 197.

Figure 1: Initial andCapturedAssessedValnes

 

DDA: Anytown, USA

$20,000,000 .z. . . W.
$18,000,000 «—
516.000.000 «-
$14,000,000 ~—
312.000.000 ..
“0.000.000 -—
$5,000,000 «—
$6,000,000 «-
54.000.000 ~—
32.000.000 <-
50 ~

   
 

I Captured Assessed Value
I hitial Assessed Value

 

MValmotAllepsrtylntlnDDA

 

Year 1 Year 2 Year 3 Year 4

 

 

The assessed value of all property in the DDA in Anytown, USA in year I of the
TIF was $10 million, as is indicated in Figure 1, above. This $10 million represents the
initial assessed value of the property in the DDA. This value is indicated by the cross
hatching, and remains constant throughout years 2, 3, and 4. In years 2, 3, and 4, the
assessed value of all property in the DDA increased to $12, $15, and $20 million,
respectively. The value that exceeds this $10 million in each of the three years is the
captured assessed value. This amount totals $2, $5, and $10 million in years 2, 3, and 4,
respectively.

In the example, property taxes would be paid on the $10 million in initial assessed
value to those bodies having taxing jurisdiction in the municipality (city, county, airport
authority, etc.) during each year of the TIF. Tax revenue on the captured assessed value
would be distributed to the DDA. Property [owners see no additional property taxes,

therefore; a portion of what would ordinarily be paid is simply allocated to the DDA. In

l7

addition, as the DDA generates economic development and increased property values, its
funding increases.

Public Act 197 allows TIF revenues to be used toward those activities described
previously, but requires expenditures to be narrowly defined in a development plan. The
plan must describe the specific projects to be financed, and the estimated cost and duration
of the improvements. For the TIF to be approved, the plan must be submitted to the
governing body of the municipality, and public hearings held. So long as the governing
body finds the plan to be a public purpose, consistent with the considerations in section 19
of PA 197, it may approve the plan by ordinance.

The powers and financing sources described in PA 197 are intended to provide
“communities with the necessary legal, monetary, and organization tools to revitalize
downtown districts. . (City of Howell 1991, 1, emphasis added). Certainly, the Act
provides the potential for the development of a revitalization organization with widespread
support, a full-time staff, and a downtown plan. This study will evaluate the effectiveness
of Michigan DDAs as economic and historic revitalization organizations, based on the

extent to which they meet these standards.

RESEARCH METHODS
Initial Selection of Cities

As has been stated, the intent of this study is to evaluate DDAs as downtown
economic and historic revitalization organizations in small Michigan cities. A
representative sample of study communities, therefore, had to be chosen. This process
began with a brainstorming session involving Professor Miriam Rutz, Michigan State
University faculty advisor, and the author. An initial list of smaller Michigan cities known
to have a historic downtown was developed. This list numbered 36.

As the study focuses on small cities, criteria were developed for classifying city
size. It was decided that cities under 5,000 residents would generally lack the resources to
sustain a viable downtown. A population of 5,000 was determined, therefore, to be the
lower threshold of small cities for the purposes of this research. Ten thousand residents
was determined to be the upper population limit. This 5,000 to 10,000 range would
provide a sufficient sample of cities with the identity and unique sense of place that the
study sought to consider.

Additional criteria were considered to further narrow the list and obtain a sample
of three small Michigan cities. Cities such as Albion, housing colleges and universities,
were eliminated from the list as they would be subject to somewhat unique economic
conditions resulting from the student population. Likewise, those cities within the retail
trade area of a larger city would not be considered, as the economic activity of an urban

center could influence a revitalization effort in ways not possible in a more autonomous

18

19

city. It was for this reason that the city of Grand Ledge, for example, was not considered
for inclusion even on the initial list.

Next, it was determined which of the remaining thirteen cities currently have or
have had DDAs. A search of Michigan city planning documents held in the Charles W.
Barr Planning and Design Library at Michigan State University, supplemented by multiple
Internet searches, further narrowed the list to those cities whose revitalization efforts
included both economic and historic preservation components.

Figure 2 shows the list of 36 Michigan cities. Those shaded in gray are outside of
the 5,000 to 10,000 population range. The three in boldface type - Howell, Ludington,

and Tecumseh — were the cities selected for study.

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 2: Potential Study Cities
_ _Revitallzstlon Elelnents L
ithin s College] Preservation Ecmomic Planning Internet

Clty Pop. DDA? Metro Area? University Conrponegt- Congponent Library? Search?
Albion 9,884 Yes
Alpura 11,589
RIC-3t? 36.548
Baum Ihrhrr 11,824
Big Rapids 10,471
Brighton l 6.418%- l | l l l
Cassville 866
cram 9U
Downsize | 6,101lYes l | I | |
Gaylord 3,837
(hand PM 12,142
l-hrrism 2,061
W l 6.349l I I l l I
mum I 8.252I I I I I I
Hollmd 33,247
I-krrner 1,065
I-bughton 7,426
Howell 9,348 Yes Yes Yes Yes
Jacksm 35,899
Lapeer 8,122 Yes Yes
Ludington 9,012 Yes Yes Yes Yes
mm 941
Manistee | 6,393 IYes I [Yes IYes | IYes
Msrqusm 17,016 -
Marshall | 7,251|Yes I I | | l
Monroe 22,563
Musician: 39,518
Plymouth | 9,670|Yes [Yes | l l I
Part Hurm 32,873
ReedCity 2,395
Ssugaoxt 909
Sault Ste. Nixie 15,31!)
St Joseph | and l I | l l
Toms City 1,696
Teallllldl | storm- I [Yes [Yes [Yes |
Trsvu'sc City 15,082 ’

 

 

 

‘Nots:popn|atiomsrehssedonlulyl,l996us.CmBmesnestimstss

Figure 3: Map of the Three Study Cities

I-75
US‘27 1-75
Ludington
7
”5'31 US-131

I-69

 

 

 

""'" I-94

I-69 .
Tecumseh

 

 

21

22
Final Selection of the Study Cities

Howell, Ludington, and Tecumseh most closely meet the selection criteria, and on
the basis of these criteria alone, the three cities are very similar to one another. A closer
look reveals that each varies from the other two somewhat distinctly. The selection of
these particular cities, therefore, provides a rather diverse sampling of downtowns in small
Michigan cities.

The following represent the more critical distinctions between the three study
cities:

0 Tecumseh is the only one of the three cities that is not a seat of county

government

0 Ludington, being at Lake Michigan, possesses a strong topographic amenity
while the other two do not.

0 All three downtowns lie along a major roadway, with a US. highway passing
through downtown Ludington and the Tecumseh and Howell downtowns lying
along separate state highways. Howell, however, has the only downtown near
an interstate.

0 The populations of Tecumseh and Howell have climbed dramatically since
1930, presumably due to the movement of the population in Southeast
Michigan out of Detroit. The population of Ludington, on the other hand, has

been gradually declining since 1950, despite the fact that the remainder of
Mason County has been growing.5

 

5 The populations in both Tecumseh and Howell have increased during every Census from 1930 through
the 1996 estimates referenced previously. The overall population increase in the two cities is more than
225% and 150%, respectively. The population in Ludington decreased by a little more than 10% between
1950 and 1990, while at the same time, the Mason County population increased by nearly 30%.

All population data is based on information from the US. Census Bureau.

23

So while each is similar to the others in terms of current population and a desire
for an improved downtown, the three possess unique geographic and demographic
characteristics. A more complete discussion of the cities and their respective revitalization

efforts follows the summary of questionnaire responses.

The Questionnaire

A questionnaire administered by telephone was the primary means of gathering
data for the study. The intent of the questionnaire was to determine from the staff
member in each city most familiar with the management and operation of the DDA, its
effectiveness in deve10ping widespread support, management with a full-time staff, and a
downtown plan. The questionnaire was developed using principles described by Earl
Babbie (1995) in The Practice of Social Research, 7'“ ed. It was reviewed by faculty
advisor, Professor Miriam Rutz, to clear up ambiguities and refine question order.

The questions are broken into five sections. The first section gathers information
about the respondent, including his/her position with the city. It also asks for the
relationship of the respondent to the DDA. This is intended to determine whether the
respondent provides staff assistance or actually sits on the governing board.

The background section attempts to learn a bit of the history of revitalization in the
city. The first two questions ask the respondent to describe the economic and historic
preservation achievements of the revitalization effort. These were placed first to get the
respondents’ impressions of the strengths of the effort absent the bias of this study. This
section also tries to get at how the DDA fits into the chronology of revitalization in the

downtown.

24

The remaining three sections ask the respondents to provide information about the
capacity of the DDA to develop widespread support, management with a full—time staff,
and a downtown plan. The questions are intended to gain an understanding of the role of
the DDA relative to other downtown organizations and to detail the means by which the
DDA managed to involve all interested parties. Specific questions focus on the
importance placed on historic preservation and economic growth during plan development
and implementation, to get some indication of the nature of the revitalization effort. A

copy of the questionnaire can be found in Appendix III.

SUMMARY OF QUESTIONNAIRE RESPONSES

Mike Herman, the City Manager of Howell; Mary Beutell, the Community
Development Director for Ludington; and Chris Manegold, the Economic Development
Director for Tecumseh, were kind enough to offer responses to the interview
questionnaire. Each of them provides staff assistance to the DDA in their respective cities.
Herman is also an appointed member of the Howell DDA board, while Manegold serves
as the manager of the Tecumseh DDA. What follows is a summary to their responses to
the questionnaire, grouped under the following questionnaire headings: Background,

Widespread Support, Management, and Downtown Plan.

Background

When asked about the major economic achievements of the revitalization effort, all
three respondents referred to the accomplishments of the TIF program in their city. The
projects are all fairly typical streetscape improvement projects involving the installation of
streetlighting, landscaping, and sidewalk improvements. All three cities have also been
involved in parking improvements, including the elimination of meters downtown and the
installation of additional parking lots.

In terms of historic preservation accomplishments, the respondents referenced
facade improvement programs. Each DDA has established some form of revolving loan or
grant program to help property owners preserve and rehabilitate their building facades.

Although the programs have been well received and widely utilized in Howell and

25

26

Tecumseh, Beutell reports that there has been, to this date, considerable resistance to
preservation in Ludington.

Revitalization efforts in the three cities began between the mid-19808 and early
19908. In two of the cities, the DDA was involved in initiating the revitalization effort. In
Howell, however, the effort began as a citizen’s movement to preserve the Livingston
County Courthouse in the late 19808. Following that successful preservation effort, the
revitalization spread throughout the downtown. The DDA was formed in the early 19908
to help facilitate efforts.

The revitalization effort in Ludington is currently struggling to find the necessary
funding to complete the streetscape and parking improvements. The DDA is working
with the chamber of commerce to develop support for the effort among the downtown
business and property owners. The other cities are moving into marketing phases, with
Howell looking to reverse the recent growth of office and other non-retail uses in the
downtown through retail recruitment, and with Tecumseh attempting to expand its trade

area beyond the limits of the city.

Widespread Support

All three respondents reported that the support of DDA members, government
officials, and downtown business owners (via the respective chambers of commerce) had
been sought during the revitalization effort. In Tecumseh, the input of a citizens’ advisory
board had also been requested during planning and implementation. The DDA in
Tecumseh was the only one of the three to request the participation of the general city

population.

27
Management

The governing boards of the three DDAs are fairly similar in terms of membership.
The majority of members in each city are downtown business and property owners. The
Howell board is nine members and includes the director of the Howell Area Chamber of
Commerce. The other two cities have twelve member boards, allowing the opportunity
for financial and legal professionals to serve.

The questionnaire responses indicate that the similarity in management across the
three DDAs probably ends with the boards. The authorities in Howell and Tecumseh are
similar in that the DDA acts as a facilitator between the various downtown business
associations and government officials. The DDAs in these cities have acted to coordinate
the efforts of the individual parities throughout the respective revitalizations. As well, the
DDA in each city is staffed by at least a part-time manager to keep the effort on schedule
and on budget. The part-time DDA manager position in Howell is made possible by
funding from the chamber of commerce. Manegold and his part-time assistant, who are
both members of city staff, have management of the Tecumseh DDA as their primary
responsibility.

The management of the Ludington DDA sharply contrasts these. The DDA has
been the organization responsible for sustaining the revitalization effort in the downtown.
Although they are seeking assistance from the chamber of commerce to gain support from
business and property owners, the DDA has generated most of the ideas and plans for
downtown. While city staff is able to provide a limited amount of assistance, the DDA is
not able to fund even a part-time manager to provide leadership and to keep the

revitalization on schedule.

28

Downtown Plan

Each of the respondents was able to supply a copy of the downtown historic and
economic revitalization plan. The respondents reported that plan development was
generally the same in each of the three cities with business and property owners conring
together to set goals and strategies. The notable exception was Tecumseh, where a
citizens’ advisory board was formed to get input from the city population living outside of
downtown.

Manegold also reported that the Tecumseh plan also included a somewhat unique
implementation strategy. Responsibilities were assigned to the various downtown
organizations: the Central Business Association, the Chamber of Commerce, the Historic
Preservation Commission, and the DDA. Manegold and his assistant, as a part of their
management duties, must see that each group is fulfilling its responsibilities on schedule.

The DDAs have generally implemented their downtown plans as written. Minor
scheduling changes were required in Ludington where the effort has slowed due to limited
funding.

With regard to plan development, the three respondents were asked how much
importance, on a scale of 1 to 10 (with 1 being very little and 10 being very much) they
felt had been placed on historic preservation and economic growth. They responded as

follows:

Figure 4: Question #14 Responses

I Preservation Growth

Herman 10 6-7
Beutell 5 7
6-7 10+

 

29

Interestingly, all three respondents reported that preservation was a greater priority
during implementation of the plan than it was when the goals were set. Beutell reported
that this was even true in Ludington, where a historic district study committee is
recommending against the formation of a historic district downtown because of resistance
from property owners.6 The respondents stated that the business and property owners in
each of the downtowns recognize that the historic buildings provide a unique identity for
downtown. Howell and Ludington are now able to market this identity to potential

retailers as well as customers to further the economic growth of downtown.

 

‘5 Property owners apparently fear that the designation would limit their control over the design and
materials of their storefronts.

PROFILES OF THE REVITALIZATION EFFORTS

Having considered the questionnaire responses for Howell, Ludington, and
Tecumseh in the aggregate, this chapter provides a summary of the revitalization efforts in
each of the three cities. The profiles are based both on the responses to the questionnaire
and the respective downtown plans. They are intended to provide contrast and to

distinguish the economic and historic revitalization efforts from one another.7

Howell

According to Mike Herman, Howell City Manager and an appointed member of
the DDA governing board, the beginning of the revitalization effort in downtown Howell
predated the formation of the DDA in early 1991. In the late 19808, the citizens of
Howell initiated an effort to preserve the Livingston County courthouse. This successful
effort sparked much interest in preservation of the downtown and several property owners
initiated privately funded efforts to rehabilitate their storefronts.

To facilitate these efforts, the DDA contracted with a planning consultant firm in
1991 to develop a revitalization strategy for downtown. The Howell Area Chamber of
Commerce, downtown business owners, and the city came together during the
development of this strategy to set the vision for downtown. This vision has included the
installation of decorative street lighting and the institution of a grant that has funded the

renovation of three building facades.

 

7 Maps of the downtown district in each of the three study cities can be found in Appendix II of this study.

30

31

The DDA developed the revitalization strategy not only to address the physical
improvement of downtown and to maintain a cohesive identity, but also to consider some
of the economic constraints there. While the downtown currently experiences few
vacancies, retailing has, in recent years, given way to an increasing number of office uses.
In an effort to overcome the obstacles to retailing, the DDA has recently completed some
parking improvements and is funding studies to consider strategies for increased
marketability of the downtown.

Also toward this end, a DDA manager has been hired to work on attracting and
maintaining more retail uses downtown. This individual is employed on a part-time basis
by the Howell Area Chamber of Commerce and contracted to implement the DDA goals.

This relationship with the Chamber of Commerce is indicative of the role of the
DDA in the revitalization in Howell. Herman characterizes the DDA as a facilitator and
liaison between the Chamber and the business and property owners it represents, and the
city and county governments and the assistance that they are able to provide. In fact, the
Director of the Chamber and downtown business and property owners hold seven of the
nine memberships on the DDA governing board. In this regard, the Howell DDA has

served to create a real public-private partnership in the downtown.

Ludington

The TIF Plan for the Ludington DDA (1989) reports that the downtown suffered a
rather significant blow in the early 19808 when Montgomery Ward & Company left the
downtown. While the prime space was refilled by other businesses, only one major retailer

remained in the downtown following the company’s leaving. Many of the replacement

32

businesses have been of a very different character, directing their attention toward the
seasonal tourism market Even with these retailers, there were 18 vacancies at the time
the TIF plan was written, and according to Mary Beutell, Community Development
Director for the City of Ludington, a high vacancy rate continues to be the primary
concern in the downtown.

Unlike the DDA in Howell, the Ludington DDA has been the group primarily
responsible for leading the revitalization effort and generating plans for downtown since it
was formed in 1984. That effort has involved two major streetscaping projects that were
funded using TIF money. These projects focused on landscaping and brickwork along the
sidewalks, the installation of streetlights, and parking lot improvements in the downtown.
The DDA also started a loan fund to pay for facade renovations.

Beutell stated, however, that historic preservation was a very low priority
throughout the development of the revitalization effort. She referenced the report recently
completed by the historic district study committee recommending against designating a
historic district downtown. Resistance by downtown business and property owners, due
apparently to the perceived design limitations that a historic district might impose, was
cited among the reasons for recommending against the‘designation.

Despite this, Beutell reported that preservation is becoming much more of a
priority downtown. Retailers are realizing the character and sense of place that the
downtown buildings provide, and many see them as a tool for attracting major retailers
back. Given the resistance to historic district designation, any preservation efforts would

presumably be initiated by individual retailers and property owners.

33

The Central Business District Master Plan recognized the lack of coordinated
action downtown: “Like the community at-large, the business community in Ludington has
also struggled to find common goals and agree on the means to achieve them. Store
hours, for example, lack any consistency from one business to another. Storefront design
also reflects a lack of harmony” (City of Ludington 1986, 12). The plan recommended
that a staff person be hired to manage the coordination of activities in the downtown as a
remedy. This is not likely to occur soon as, according to Beutell, the DDA is currently
struggling to find adequate funds for its activities downtown. In addition, she and the

Other city staff are only able to assist the DDA on a limited basis.

Tecumseh

Chris Manegold, Economic Development Specialist for the City of Tecumseh, and
his three-quarter-time assistant make up the management team for the Tecumseh DDA.
While they do have other responsibilities, he says that the downtown is their primary
focus. In particular, it is Manegold’s responsibility to see that the Economic Enhancement
Strategy 1995 (HyettPalma, Inc. 1995) plan stays on schedule.

On July 1, 1998 the DDA will enter the third year of that plan. Unlike those in
Howell and Ludington, the Tecumseh plan was deve10ped with input from an advisory
board that included not only downtown retailers and property owners, but also city
residents. Representatives of HyettPalma, Inc., the consulting firm that developed the
plan, interviewed members of this board todevelop a set of shared goals and objectives.
The consultants then developed an implementation strategy that divided responsibilities

between the Central Business Association, the Chamber of Commerce, the Historic

34

Preservation Commission, and the DDA. The DDA retains the primary role, as it provides
funds through TIF.

Having completed $900,000 in streetscape improvements, including the installation
of streetlights, benches, landscaping and planters, and sidewalk improvements within the
four-block downtown area, the effort is now looking at parking. Meters have been
removed downtown; parking lots are going to be improved and directional signage
installed. The current budget is also looking at maintenance of the improvements.

Year three of the plan will focus on marketing the overall image of downtown.
That image has been central to the effort since it began in 1990. At that time, the City of
Tecumseh Master Plan recognized “a need to build upon and improve the small city
historic character of downtown Tecumseh” (Vilican-Leman & Associates 1990, 26). The
comnritrnent to preservation remains as strong today, with the DDA and Chamber of
Commerce coordinating the distribution of $100,000 in annual low interest loans for
interior and exterior renovations by local banks. Manegold says that preservation has
remained a priority in the effort because downtown retailers and business owners realize
that the structures create the characrer and identity of downtown Tecumseh. The
revitalization effort has focused on strengthening that character to help maintain the

viability of downtown.

FINDINGS

The objective of this study, as it was stated in the introduction, has been to
evaluate the extent to which Michigan DDAs in cities with a population of between 5,000
and 10,000 people are able to develop widespread support, management by a full-time
staff, and a downtown development plan to engage in an economicand historic
revitalization of downtown. The telephone interviews and the experiences of Howell and
Tecumseh would seem to indicate that DDAs have the capacity to develop widespread
support, full-time management, and a development plan. This chapter will explore the

extent to which the DDAs were able to develop these.

Widespread Support

Support for the revitalization efforts in the three study cities ran the complete
spectrum from Ludington, where there was little to no support for a collaborative effort,
to Tecumseh, where advisory boards of city residents and downtown retailers and business
owners came together to set the shared vision of downtown. The scope of this study was
not such that the reasons for the differences between the communities can be identified.
The study seems to indicate, though, that participation‘by the general public, in addition to
that by downtown business and property owners, facilitates the development of
widespread support.

In Howell, the revitalization effort was initiated by a citizens’ movement to see the
preservation of the Livingston County Courthouse, a local landmark. That movement

blossomed into the overall revitalization of downtown. Citizen support was accomplished

35

36

in Tecumseh when a citizens’ advisory board was invited to participate in the Visioning
process downtown. In both cases, citizen participation has lead to a broader base of
support and seems to have resulted in greater success in the economic and historic
revitalization of downtown.

It is interesting to note the role that historic preservation played in collaboration.
Even in Ludington, there was a recognition that the historic structures in the downtown
have established its character, and that their preservation could lead to its revitalization.
There was a sense that a downtown with a strong and unique identity might attract major
retailers back. In fact, in Howell and Tecumseh, the recognition of the need to preserve
the identity of their respective downtowns provided the initial shared goal around which
widespread support and collaborative action was developed.

Having developed widespread support and consensus around shared goals, both
Howell and Tecumseh were able to establish strong public-private partnerships. The
DDAs, which are public bodies, made concerted efforts in both cities to work closely with
the established downtown organizations, including the chambers of commerce. In Howell,
the DDA worked as a facilitator not only between the chamber and the city government,

but also the county government.

Management by One Entity With a Full-Time Staff

Ludington has struggled since the formation of the DDA with developing
management. The lack of agreement among the different interest groups and a dwindling

budget have been cited as the major causes. With these two conditions apparently

37

worsening, the development of a management structure in Ludington is not likely to occur
soon. Howell and Tecumseh were both able to develop a management structure, though.

In Howell, the chamber of commerce provided the budget to support the
management functions of the DDA. While this individual did not work in a full-time
capacity, the comnritrnent to downtown was sufficient to see that implementation of the
program was occurring on schedule and to explore some additional funding options,
including grants.

Tecumseh was the only one of the three cities to accomplish full time management.
Managing the DDA and its efforts was the primary responsibility of Chris Manegold, the
Economic Development Specialist for the city, and his part time assistant. As in Howell,
the staff was responsible for keeping the revitalization on schedule and on budget. The
management responsibilities also extended to include such things as making sure that
regular payments were being made on the DDA’s 20 year bond and budgeting for the
maintenance of downtown improvements.

As has been stated the management structure of the DDAs in both Howell and
Tecumseh also appears to have contributed to success. The DDA serves in both instances
as a facilitator and a collaborator. This has allowed tasks to be divided among the
interested parties, drawing upon the strengths of individual downtown organizations, as
well as city and county departments, with the DDA maintaining overall management

authority

38
Downtown Plan

Each of the three DDAs has developed plans that included the five components
that ULI identified as being required in a downtown plan. Those components are: an
inventory of existing conditions; identification of problems and opportunities, with a
market analysis for overcoming problems and taking advantage of opportunities; the
boundaries of the plan area; goals, objectives, and action plans; and a description of the
management and financing necessary to implement the plan. In fact, the involvement of
the DDA in the revitalization of each downtown typically began with the creation of such
a plan.

The other recommendation of the ULI with regard to the downtown plan is that it
be formally adopted by the legislative body of the city. This recommendation is made to
assure that the public will have the opportunity to comment on the plan at public hearings
and that the legislative body formally goes on record supporting its implementation. While
the plans in Tecumseh and Ludington were formally adopted, the streetscape design
concept in Howell was not. The concerns of ULI are probably not an issue in Howell,
however. First of all, the DDA, being a public body, held public hearings during the
formation of the plan. Furthermore, the TIF plan provided the funding for implementation
of the design concept. PA 197 requires that the TIF plan be subject to a public hearing
before the legislative body. The Howell City Council had to adopt it before

implementation could begin.

39
General Findings

There were a couple of additional findings that, while they do not necessarily fit
within any of the above elements, impact DDAs as downtown revitalization organizations.
The fust is that in all of the three cities, the respondents to the telephone interview stated
that historic preservation was at least as much, if not more so, a priority when the
revitalization was implemented as when the goals had been set. Even Mary Beutell,
Community Development Director of Ludington, stated that preservation is now more of
a priority than it was in 1984, when the DDA was formed. There is a real sense that the
historic character of the small town is a major asset in maintaining the viability of
downtown.

Also, consideration had not been made in this study to the recent legal changes
pertaining to TIF. In 1994, the property tax structure in Michigan was significantly
changed as a result of a special election on an item known as “Proposal A.” Voter
approval of the proposal on March 15, 1994 meant that school district revenue would no
longer come from property taxes. As a result, school tax revenue from the captured
assessed value of property in the DDA was no longer a potential revenue source after
1994.

The anticipated tax increment revenues in Howell and Ludington had been
determined in plans drafted prior to this change having been made. The respondents in
both cities reported that they were having difficulty finding adequate funds to continue
implementation of the original plan. Although Tecumseh had begun streetscape
improvements in 1990, prior to the 1994 passage of Proposal A, their current

revitalization strategy was developed in 1995. Chris Manegold did not report any funding

40

problems in Tecumseh. Rather, he stated that the revitalization is currently on schedule.
Further research would be required to know the full impacts of this change on past and

future DDAs in Michigan cities.

CONCLUSION

The stated objective of this study has been to evaluate the extent to which

Michigan DDAs in cities with a population of between 5,000 and 10,000 people are able

to develop widespread support, management by a full-time staff, and a downtown

development plan to engage in an economic and historic revitalization of downtown. This

evaluation has been made based on the review of revitalization plans and strategies and

through telephone interviews with city staff responsible for the administration of DDAs in

Howell, Ludington, and Tecumseh. Once again, the study found that:

overall citizen participation, in addition to that of downtown business and
property owners, may be a necessary element in developing widespread
support;

strengthening the overall identity of downtown through historic preservation is
generally a shared goal in the downtown that can facilitate the development
support and collaborative action;

full-time management seems to be best, but part-time is better than none;

the DDA serving in the role of manager and facilitator of the economic and
historic revitalization strengthens the public-private partnership, increasing the
potential for success;

DDAs have the capacity to create a downtown plan that includes: an inventory
of existing conditions; identification of problems and Opportunities, with a
market analysis for overcoming problems and taking advantage of
opportunities; the boundaries of the plan area; goals, objectives, and action
plans; and a description of the management and financing necessary to
implement the plan;

the changes in the property tax structure resulting from Proposal A may limit
the funding opportunities for TIF plans developed prior to 1994; and

preservation plays an ever increasing role in the revitalization of downtown.

41

42

This review indicates that Michigan DDAs in cities of between 5,000 and 10,000 people
can develop the capacity for forming such an organization. The study, as well, points to

some possible avenues for future research.

Recommended Future Research

The scope of this study has been sufficiently limited to allow completion within the
available time frame. The study has, therefore, only considered three Michigan cities. As
has been indicated, this represents only a small sampling of cities that might potentially be
studied. City staff were interviewed to gain a municipal perspective. A more
comprehensive survey would allow for input from orher interested parties including,
elected officials, business owners, chambers of commerce, and DDA board members to
see if the perception of the DDA in each downtown is universally accepted by all
stakeholders. The study should be seen, therefore, as a preliminary investigation of the
issue.

In addition, as it was completed, the study indicated certain trends not considered
in the design of the research that may be worthy of additional study. The relative success
of the efforts in the three study communities was not considered, for example. As the
research of the ULI indicated, there appears to be a correlation between the success of the
effort and the strength of the organization. Future study might consider the economic and
quality of life returns that a community could expect based on the level of organizational
commitment.

While the study indicated a capacity for DDAs to perform as successful

revitalization organizations, there was a wide disparity in the level of support from

43

business and property owners. There is nothing in this study that can definitively account
for the ability of Tecumseh and Howell to accomplish coordinated action, where business
owners in Ludington were unable to formally identify a shared vision for downtown.
Research could discuss the historical political, developmental, and demographic trends in
the three cities and attempt to reason why a climate that favors coordinated action does
not exist in Ludington.

Finally, in reviewing the revitalization plans of Howell and Ludington, both
implemented prior to the passing of Proposal A, and that of Tecumseh, implemented after
the Proposal, there seems to be a distinction in the ability of the DDAs to maintain
sufficient funds. The respondents from Howell and Ludington indicated that the
respective DDAs were struggling to find the money to continue with implementation. The
Tecumseh DDA is having no such problem. Future study should examine whether this
distinction is attributable to different management strategies, for example, or whether pre-
Proposal A DDAs are subject to a lack of funds due to the restructuring of property

taxation in Michigan.

APPENDIX I: PUBLIC ACT 197 OF 1975, AS AMENDED;
DOWNTOWN DEVELOPMENT AUTHORITIES

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APPENDIX II: MAPS OF THE DOWNTOWN DISTRICTS IN
HOWELL, LUDINGTON, AND TECUMSEH

 

 

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APPENDIX III: INTERVIEW QUESTIONNAIRE

71

QUESTIONNAIRE

 

City:

My name is Jeff Gray; I am a graduate student in the Urban and Regional Planning
Program at Michigan State University. I am studying how smaller cities develop an
organization to engage in an economic and historic revitalization of their commercial
downtowns. In particular, I am interested in evaluating the capacity of Michigan
Downtown Development Authorities to serve as this type of an organization. CITY is
among the cities I have chosen to study.

I have developed a survey form with about 20 questions. It is intended to determine from
one person familiar with the operation and achievements of the DDA, its capacity for
forming such an organization. Are you the person that I should direct these questions to?
Is now a good time for you to answer these questions?

Respondent

Name:

 

Title:

 

Organization:

 

Relationship to DDA (if not already clear):
Tecumseh only:
In what year was the DDA formed?

Has the DDA been terminated? In what year?

Background
1. Describe the major economic achievements of the revitalization effort.

DDA Questionnaire 72
Page 2

2. Describe the major accomplishments in terms of historic preservation.

3. When did the revitalization effort begin in your downtown?

4. What is its current status?

Widespread Support
5. List those groups and individuals that were included in the revitalization effort.

Management
6. Please describe the role of the DDA related to the other organizations involved.

7. Describe the general membership of the governing body.

DDA Questionnaire 73
Page 3

8. Describe the stafl‘ assistance available to the DDA (including city planning department
staff and for-profit and nonprofit consultants, if applicable). What were the
responsibilities of these individuals with regard to the revitalization effort?

9. Were any of these individuals committed to the revitalization efi‘ort on a full time basis?

Downtown 113p

Plans:

0 Howell - Have Downtown Development and Tax Increment Financing Plan. Carlisle
Associates developing downtown revitalization strategy.

0 Ludington — Have Development and Tax Increment Financing Plan. Central Business
District Master Plan

0 Tecumseh - CBD in the Master Plan

Tecumseh only:
10. Did the DDA develop an overall economic and preservation plan for the downtown?

1 1. Was the plan formally adopted by the legislative body of the city?

12. Would it be possible to get a copy of that plan?

DDA Questionnaire 74
Page 4

13. During plan development, how much importance, on a scale of 1 to 10 (1=very little;
10=very much), would you say was placed on:

Historic preservation
Economic growth

14. Which segments of the community were involved in the plan development and how
were they involved?

15. What were the visions and goals for downtown set in the plan?

15a. How were these goals arrived at?

16. How were the strategies for implementing the plan set?

17. Explain any changes that might have been made to the plan during its implementation.

18. Did historic preservation remain as much a priority during implementation of the plan
as it was when the goals were set?

REFERENCES

Babbie, Earl. The Practice of Social Research, 7'” ed. Belmont, CA: Wadsworth
Publishing Company, 1995.

City of Howell. Downtown Development and Tax Increment Financing Plan. 1990.
City of Howell Downtown Development Authority. S treetscape Design Concept. 1992.

Cloar, James A., Elizabeth Stabler, and Anthony P. DeVito. Centralized Retail
Management: New Strategies for Downtown. Washington, DC: ULI—the Urban
Land Institute, 1990.

Glisson, Linda S. Main Street: Open for Business. Washington, DC: The National
Trust for Historic Preservation, 1984.

Goodman, Collette C. Legal Considerations in Establishing a Historic Preservation
Organization. Revised by Stefan N agel. Washington, DC: The National Trust
for Historic Preservation, 1994.

Gratz, Roberta Brandes. The Living City: How America’s Cities are Being Revitalized by
Thinking Small in a Big Way. Washington DC: The Preservation Press, 1994.

Hall, Peter. Cities of Tomorrow: An Intellectual History of Urban Planning and Design
in the Twentieth Century. Cambridge: Blackwell, 1988.

HyettPalma, Inc. Economic Enhancement Strategy 1995: “Our Hometown: Tecumseh."
1995.

Jacobs, Jane. The Death and Life of Great American Cities. New York: Random House,
Inc. 1961. Reprint, New York: Random House, Inc. 1993.

Keister, Kim. “Main Street Makes Good,” Historic Preservation 42, no. 5 (September/
October 1990): 44-50, 83.

Kotval, Zenia and John R. Mullin. “When the Mall Comes to a Small Town: How to
Shape Development with Carrots and Sticks,” Small Town 23, no. 2 (September-
October 1992): 14-21.

Kunstler, James Howard. The Geography of Nowhere: The Rise and Decline of
America's Man-Made Landscape. New York: Touchstone, 1993.

Ludington Downtown Development Authority. Development and Tax Increment
Financing Plan for the Ludington Downtown Development Authority. 1989.

75

76

McBee, Susanna, et a1. Downtown Development Handbook, 2'” ed. Washington DC:
ULI — the Urban Land Institute, 1992.

Michigan. “Downtown Development Authority, Act 197 of 1975.”

National Main Street Center. “Some Great Things Happening in Main Street
Communities,” [Online] Available http://www.mainst.org/about/communities.htm,
February 8, 1997.

. “The Main Street Approach,” [Online] Available http://www.mainst.org/about/~
approach.htm, November 20, 1997.

Palma, Dolores. “Downtown Trends, Downtown Success,” Public Management 12,
no.12 (December 1992): 2-5.

Robertson, Kent A. “Downtown Redevelopment Strategies in the United States: An End-

of-the-Century Assessment,” Journal of the American Planning Association 61,
no. 4 (Autumn 1995): 429-437.

Skelcher, Bradley. “What Are the Lessons Learned from the Main Street Pilot Project,
1977-1980?” Small Town 23, no. 1 (July-August 1992): 15-19.

Skelcher, Bradley. “Main Street Mid-America: An Historical Overview of the Main Street
Pilot Project in Galesburg, Illinois,” Small Town 21, no. 1 (July-August 1990): 4-
13.

Tyler, Norman. Issues of Historic Preservation. Columbus, OH: Greyden Press, 1994.

. “An Evaluation of the Health of the Downtowns of Eight Michigan Cities.”
Ph.D. dissertation, the University of Michigan, 1987.

 

Vilican-Leman & Associates, Inc. City of Tecumseh Master Plan. 1990.

WDBC Group, The. Central Business District Master Plan: City of Ludington,
Michigan. 1986.

      

   

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