The Development of Authority, Part One: An Introduction

[XLFD]

(This is the first of a series about the Ludington Downtown Development Authority, a progressive instrument for revitalizing the downtown.  The author admits a libertarian bias, and a low IQ when it comes to justifying a composite entity made out of businesses and government bodies, but struggles to be fair to DDAs, and tries to set up the background for future parts of this series investigating the appearance of corrupt practices in Ludington.)

 

WHAT IS A DDA?

 

Most people either do not know or are vague on this concept.  In 1975, the Michigan Legislature created Act 197, which allows communities to establish a Downtown Development Authority. According to the Act, the purpose of a DDA includes:

 

1) Correcting and preventing deterioration in business districts.
2) Encouraging historic preservation.
3) Authorizing the creation and implementation of development plans in the districts.
4) Promoting the economic growth of the districts.
5) Creating a Downtown Development Authority Board.
6) DDAs may raise revenue for physical improvements through several methods, including: tax increment financing, issuing revenue bonds, tax levy, and grants.

 

A BRIEF HISTORY OF LUDINGTON'S DDA AND ISSUES: 

 

 

 

In Ludington, The Downtown Development Authority was created by Ordinance 794 on November 12, 1984.  It was amended in 1988 to expand; in 1989 it was once again amended and a TIF plan (to be explained in pt. 2)) was introduced.  In 2004,its existence was renewed for 15 more years.  In 2008, a new TIF plan was introduced.  According to the DDA's 2008 TIF Plan the issues downtown Ludington faced was as follows:

 

"Significant growth had taken place outside of the City of Ludington in Mason County since 1970. The increased traffic resulting from greater population, improved roads and a more mobile society had
accelerated the pressure for commercial growth which continued to occur to the east of the city limits-- finding there ample development space locations and receptive local government. ( note 1) The addition of sewer and water to Pere Marquette and Amber Townships had provided significant impetus to commercial expansion outside of the city limits.

 

Ludington's downtown area experienced some investment during this same period. A substantial obstacle to the downtown area's viability was overcome by the establishment of a parking authority in the early 1970's. This authority enabled the city to acquire and develop ample parking to serve the majority of the downtown's existing business locations. (note 2)

 

The last few years have witnessed a growing vacancy rate in the area identified as the Central Business District as the mix of commercial business has continued to decline. The central business district lost several major general line retailers, including Montgomery Ward & Company and JC Penny. While other retailers now occupy such buildings, no major retailer replaced these lost businesses.

 

Many existing businesses moved from Ludington's downtown to the Pere Marquette Township
and Amber Township US 10 corridor to capture the business associated with the higher
volume traffic at that location. Many downtown businesses were unable to compete with
the Big Box store developments in this area.

 

Many replacement businesses in the Central Business District have been
aimed at and have catered to only a seasonal market for tourist and summer residents.
There are presently several vacant business units within the DDA district. "(note 3)

 

NOTES: 

 

1) A 'receptive local government' refers to 2 townships (Amber and PM) whose leaders took a mostly 'hands-off' approach to incoming businesses (neither had or have DDAs and were less regulative than the city).  Perhaps showing that businesses like it that way.

 

2)  This was accomplished before the DDA's creation, as was the investments in the area.  One could say the business owners were making reasonable adjustments that seemed to have stalled during the late 80's, coinciding with the advent of the DDA-- but not necessarily the cause for its continued decline.

 

3)  In relating the recent history of the downtown, nothing is said about the accomplishments of the DDA since 1984, a 24 year period, but then goes on to explain why we need to put more money into it (about $120,000 coming from TIF and 2 mils of property tax this year, growing to nearly $200,000 by 2018).

 

SYNOPSIS:

 

Before the Ludington DDA, merchants and the local Chamber of Commerce made decisions in their interest.  The Freedom Parade followed by the fireworks on July 4th is an excellent example of what they have done since long, long ago to attract people to downtown Ludington using private funds.  Recent attempts over the last 25 years to attract people to the downtown by a governmentally-dictated DDA using up to over $120,000 of the taxpayers money per year have had some limited success, but has ruined the downtown business' competitiveness and their autonomy (When was the last time you seen a Shopper's Guide insert be from a downtown Ludington business?). 

 

Entrepreneurs don't like this either, unless they hold the reins of power.  The 2008 TIF Plan states Ludington's Progressive Government is a distinct advantage Ludington has going for it.  Progressive governments and capitalism, throughout history,are like oil and water, and mixtures of the two wind up diluting the capitalism and fortifying the government at its expense.

 

(NEXT: part 2, Funding and Function)

[AQUAMAN]

I truly cannot think of any great significant improvements in the DDA district since it's inception. Two non-related individual entrepreneurs made significant progress, the new food market by Mr. Neal, and the new brew pub by Mr. Manglitz. If you want to throw in a big clock, a gazebo that made a nice drug/gang meeting place, now since removed to Cartier Park, and the closing of N. James St. for a Friday summer/seasonal farm market, ok then, that's the end. After 26 years of dismal and failed performance, why keep funding it? Had the City of Ludington made inroads to local and outside investors with grants and low or no taxes for an inducement, maybe things could have been different. As it stands now, we have way too many vacant buildings just ripe for picking, if, and when, another avenue to attract investment is secured. Half the stores on Ludington Ave. are sitting empty, including the old bowling alley, and the bank on S. James are the largest so far. Sad.

[XLFD]

You raise a good point I had not yet introduced Aq, with your two local entrepreneurs who probably laugh at how the DDA does things. And yet, they need to be careful not to ridicule them so as not to suffer from the potential backlash of the local politicos on the DDA.

To avoid some confusion, I must also point out that the Downtown Ludington Board (DLB) functions as the DDA in Ludington and is composed of a dozen members and a half dozen ex-officio members (non-voting). It is roughly half-and-half business and government membered.

[AQUAMAN]

I was kinda hoping some of the real owners/workers in the DDA would give their input to their business experiences with the board, like Snide or some others. Curious also as to how much money was funded since it's inception to date. I figure it's about $4Million or so, and what is there to really show for it in return on investment? A fake big ben mini clock and such nonsense?

[XLFD]

The latest TIF plan crosses the projected $1,000,000 mark in the period between the fiscal years of 2009-2018. During that time the millage will add over $500,000, projected. Four million so far may be a bit much unless you factor in inflation, then it is probably getting close to the truth.

I hope that some business owners (non-members) or DDA members can come here and chime in for its defense or say why they're against certain things. I am curious on where Snide would be on this issue.

[Edie Lindsey]

Many of my older friends and family remember either going to the neighborhood grocery and downtown areas or if they were out of town, making trips into Ludington to do all their shopping back in the 80s and before. Now, it's just a shell of what it used to be, and I have to admit, I usually don't even consider shopping there. Newer businesses seem to only cater to summer visitors for the most part.

[Mary A.]

They need to bring back some nicer anchor stores so one doesn't have to head north or south for serious shopping.

[Lisa O'Brien]

I would love for a Target to be built in Ludington.

[Sweater Cows!]

mmm... I am almost convinced to head down to Redolecia for a coffee b4 going home...but that is a 22 mile drive for coffee......but it is so good. nah, I have a french press at home, but I still need some of Lar's beans to use...Well, next time I'm down there I will have to stop in.

[AQUAMAN]

I like Target too Lisa, lots of choices with great pricing. Trouble is, we are all way too guilty of shopping these box stores, vs. the independent store owners. We need to get some more specialty stores downtown, sporting goods, bed and bath, high-end clothing and shoes, etc.. These box stores are and have been closing the downtown merchants without recourse for way too many decades already. Look at Wallyworld, it's our Fortune 500 leader for some time now. I don't begrudge them, it's nice to have alot of diversity under one roof with super pricing. But, it limits our imaginations for good products, all the copy cat box stores stock pretty much the same goods from shore to shore nationwide. So, what's an anchor store Mary, hope that's not too dumb a question? Thanks.

[Sweater Cows!]

give me a TJ maxx, Victoria secret, Shoe Carnival and Best Buy. I'd never have to leave town again. Only been to Target maybe once but don't remember what it is.

[AQUAMAN]

Uh, Target is just another box store that's half the size of a super store, no grocery, virtually, without as much merchandise, yet, plenty for most. Victoria's Secret, hmmm, that sounds pretty racey, but I like. I would probably be the one you see walking back and forth past the front window everyday, with Dave or XLFD in tow, just to look-see what type of women come and go. Gosh, now you got me blushing, rofl.

[XLFD]

It would be just our luck that we would pick the day when Behr Gone Wild came to town doing some clothes shopping, ROFR (rolling on the floor retching).