The Development of Authority, part 8: Road Trip to Blissfield

[XLFD]

When I started the Development of Authority series, my aim was to show what a patently unfair and socialistic system it was.  The first couple of installments in the series showed why I thought its funding and expenses were out of line with what this community, the downtown, and its businesses really need.  Whereas, the next installments highlighted the abuse of local taxpayer dollars by DDA events and members.  

Even if I, as a non-expert economist or writer for that matter, wasn't able to necessarily able to convince everyone of the overall detriment this institution has, and will, have to Ludington as a whole (not to mention the Main Street Program in Scottville) I did find some corroboration from a watchblog from Blissfield, a village south of Detroit near the Ohio state line, and another concerned citizen of that area named Robin. 

This intelligent woman's blog is a good read for those who are concerned about their local DDAs, and her latest entry hits the nail on the head of her local DDA and Main Street Program.  But I was also struck by this video inside her initial blog post on   Tax Increment Financing   which also explains the inequities of this financing process.  The video's a little cheesy and from South Dakota, but it is the same form of TIF that us and California have.  Just so you know, Progressive California Governor Jerry Brown is looking on eliminating most TaxIncrement Financings in California, where the idea originated.  They lead the nation in red ink.

 

 

But here is Robin's tour de force, where we actually find out  The Truth About The DDA   in Blissfield.  It's a great encore from her previous blog containing 20 reasons why the local DDA/MSP needed to be dissolved, and I think 15 of those apply to Ludington   DDA Dilemma

Are there some equally big revelations about our own DDA?  Stay tuned.

But here's a question for you:  Why do you think DDAs get a free pass from the public and private organizations in a community that would usually be up in arms about some of its practices?

[Willy]

Another excellent job of researching our over reaching government. I can understand the reason for DDA and think that the  way it is funded is ingenious but as usual all this governmental intrusion cost money and of course that cost is always put on the backs of the average tax payer. And then, in creeps the cronyism and questionable practices when DDA's programs are implemented. Robin seems to be on the ball. It wouldn't be a bad idea to contact her and see how she handles problems dealing with her local Gestapo. I wonder if she's been banned from entering her Government agencies.

[XLFD]

Right on, Willie, we both seem to be reaching similar conclusions after dealing with the local DDA and their operatives, and she may find some corroboration or new idea after she looks through my serialized investigation into this scheme called the DDA.  I am initiating contact right after I get done with passing this on. 

Inside her last thread, she had a link to a California Coalition for Redvelopment Reform article that was very lengthy but instructive.  In its Chapter 8, it makes the following statements:

"Economic Development" is a common cliche among city governments and redevelopment agencies.

It refers to a belief that tax subsidies to selected private businesses can stimulate the local economy. It assumes that the free enterprise alone is inadequate. It presumes that government planners can allocate resources more efficiently than can the free market.

Is there any evidence that redevelopment has promoted economic development in blighted areas?

No.

The first systematic statewide analysis of redevelopment agencies was published by the prestigious Public Policy Institute of California in 1998, entitles Subsidizing redevelopment in California. Veteran researcher Michael Dardia compared 114 different redevelopment project areas to similar neighborhoods outside of redevelopment areas, from 1983 to 1996.

The report concluded that redevelopment activities were not responsible for any net economic growth or increase in property taxes, and that they were a net drain on public resources. As the report's title suggests, Dardia concluded that redevelopment was being subsidized by taxes being drained from schools, the state, and special districts.

In his research, Dardia had the full co-operation of the California Redevelopment Association, which approved his methodology and confirmed his data. When his conclusion was reached, however, the CRA blasted the report and tried to have it buried. Yet it cannot refute the emerging truth: redevelopment does not work...

Pairing similar cities by area, size, and income, shows those without redevelopment posted greater gains in living standard than those with redevelopment

Redevelopment's extreme bias in favor of retail and against industry has created low wage jobs at the expense of skilled workers. It subsidizes big box stores selling largely imported goods at the expense of American manufacturing jobs...

This should come as no surprise even to the most ardent redevelopment boosters. Everywhere in the world, those countries that respect property rights and free consumer choice outperform those that put economic decisions in the hands of bureaucrats.

It is ironic that even as we encourage former Soviet bloc governments to free their economies, we increasingly entangle our local and state governments in economic policies that have repeatedly failed elsewhere."

Priceless!

[Willy]

X

I don't quite understand the question you pose at the end of your discussion. What do you mean by a "free pass" and which organizations would be up in arms?       

[XLFD]

I was in a little bit of a hurry in finishing the thread head, so perhaps it is not as clearly worded as I had hoped.  The question posed is better as a multipart question:  Why are DDAs encouraged and propagated by a) local governments  b) local businesses c) local Chambers of Commerces and d) local media outlets

If you can answer that four-parter, then you may discover that with all these organizations advocating and touting DDA programs and MMSP (Main Street) is it any wonder that the majority of the public does not understand the financing and operations of such organizations?  Here is a bigger list of such projects in Michigan that drain the power and revenue from the rest of the tax base via TIFs and tax advantages, almost all are corporate welfare:  Comm Dev A-Z  

Thanks to our current regime, our community is dotted with Brownfields, OPRAs and CDBG.  If they make a Historical District to the east of the downtown, they will suck even more out of the rest of our community, to sustain them.  This is creeping socialism dressed up in Progressive clothing.

[Marty Redman]

Here's my answer to your question in four parts. 

 A) Local governments relish the idea of being able to micromanage the businesses in the downtown.  They can put a TIF in to take more money away from other government agencies (who won't use the money as well as they would-- yeah, RIGHT.) and a special millage to take more from everyone else.

B) Local businesses, this one's easy, they get free money to improve and upkeep their business, get free advertising and marketing, free gifts like benches, signs and flowers, and other free things.  The free things courtesy of the rest of the tax base.

C) The local chamber of commerce gets all the things that they used to have to help businesses with get paid by public dollars instead of their members private dollars.  It gives them more money to play around with to influence public policy as concerns businesses. 

D) Local media outlets, I'm drawing a blank.  They get more material for stories?

 

That Robin is some lady.  I have never been near Blissfield, but she, like X, seems to have some good stuff on these progressive-garbage DDAs and Main Streets.  It would be nice to see you guys team up as Willie says.  You could be Robin's Batman. 

[XLFD]

She is an amazing woman, and just a normal person like you or I, that actually look beyond the facade of things. 

I like your answers to the first 3 parts.  But the last one is more difficult.  For that, first assume that the outlet is in the DDA like it is in Ludington, then maybe it will come to you or someone else.

[Colleen Plummer]

Wow, this isn't the case in Pentwater. I know many took advantage of the Brownfield Redevelopment in Ludington/Mason County. I applied for it myself to develop land south of Ludington that the county blighted by allowing the now super fund landfill. I experienced the negative side of the "favoritism. They seem to be in their own world there and either do not realize or don't care about their community as a whole...  What outsider would invest in an environment like that?  What a shame....

 Thanks for the education  :-)