Traverse City Record-Eagle

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July 16, 2009

Blair Township officials consider DDA

BY BRIAN McGILLIVARY

TRAVERSE CITY -- New sewer service along one of the area's busiest highways south of Traverse City couldn't sustain commercial development during Michigan's current recession.

So Blair Township officials will investigate if establishment of a downtown development authority might perk up their local economy.

A newly formed committee of township officials and area property owners is looking at several options, including a DDA, to spur activity along U.S. 31 south of Rennie School Road stretching into Grawn.

"I don't think we've had one hook-up to the sewer since Walgreens ... and that was at (the) same time (2006) we put in the sewer," said Blair Township Supervisor Pat Pahl. "We have the infrastructure in place and now we need to promote the area."

A downtown development authority doesn't require a traditional downtown. They are formed in commercial areas with declining property values. Green Lake Township formed a DDA in 2007 for the village of Interlochen.

Unincorporated villages like Interlochen and Grawn have few mechanisms to define their boundaries other than a DDA, said Green Lake Supervisor Paul Biondo. He said a DDA was the best option to improve the Interlochen area.

"We had small businesses here who struggled to survive and we needed to create a sense of place," said Crysti Baker, Green Lake's zoning administrator.

Downtown development authorities generally fund themselves through tax-increment financing, where they capture increased property tax revenue created by new developments.

"The only drawback I see to a DDA is we have so much vacant land right now we don't really know what's going in there," Pahl said. "It could really hurt the county, schools, library and other jurisdictions to lose that tax money."

Taxing jurisdictions can opt out of DDA tax capture, but none pulled out of Green Lake's DDA.

Green Lake used the funds to create a new streetscape design for Interlochen. The project allows for pursuit of state and federal grants for street improvements.

Pahl said DDA funding could be used for sidewalks, lighting and other public amenities to make the area more attractive.

Forming a DDA is a lengthy process, so the committee is starting small to immediately promote the area, Pahl said. It's developing a promotional Web site plus some directional signs welcoming people to Blair Township.

Committee member and business owner Jeff Dohm said Blair is a gateway to Traverse City with a lot of growth potential.

"I just think there's a great opportunity to position ourselves for growth in the future," Dohm said.

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