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)

[Mary A.]

An anchor store is basically a department store. It is a shopping destination and draws people to a shopping hub. Smaller independent stores can benefit from an anchor store because it brings shoppers.

X mentioned in this post that there once was a Monkey Wards (RIP) and a J.C. Penny in downtown Ludington. Those would be considered anchor stores. If there were a Penny's or a Kohl's, for instance, people wouldn't have to leave Ludington as often to shop. More dollars would stay in the city and county, and there would be more retail jobs. It's nice having Meijer and Walmart, but they do not carry some of the nicer things people want to purchase. That's my opinion, of course. I've been challenged on that over at LT.

P.S. Another thing I would love to see downtown is a "Made in Michigan" store. I would make that a primary destination to support my home state.

[AQUAMAN]

Thanks Mary, you have some very good insightful ideas I applaud. If you weren't here then, MW was where Snyders and the store next to it are now, JC was across the street where Hallmark is now, and Ben Franklin was where the Ravens is, and Newberry's was where the Lindsay's furniture store is now. Those 4 anchor stores drew most of the traffic downtown for merchandise, and is sadly missing now.

[XLFD]

Is there any possibility that an anchor store could get back into downtown Ludington?  Is the DDA going to make this harder or easier to do? 

[Willy]

I'd like to see a Best Buy/Victoria Secrets store combination. The sales ladies could model clothes while explaining the newest computer technology. The guys would believe anything they were told and would max out thier credit cards in a matter of weeks.

[AQUAMAN]

Good idea RJE, and we know how busy a store like that could get. Before long they'd have satellite stores all over downtown in the vacant stores. Just think of the new business, the downtown would be flooded pretty soon, then everyone would gain.

[Dave]

I'm sorry I have to do this..... but...... a comment about Victoria's Secret and women modeling lingerie while demoing and selling computer stuff just makes me have to ask this..... do these computers have a floppy drive?

lol

[charlemagnetism]

definitely a softwear store.

[Mary A.]

:-)

[Susan Rose]

The beginning of the end for Downtown Ludington was the expressway. This made the Muskegon Retail, and Mall less than an hour away. Once they established who was shopping "Can I get your Phione number please" This supported bringing the Super Stores, Meijers, Home Depot, Walmart to Ludington, then came the chain restaurants. This development had a detrimental affect on Scottville, Ludington, & Manistee's, small businesses. The trick now is to draw people back Downtown against the tide of almost 24/7 retail availability. I would Start with the Children and bring people together Downtown this will create commerce and support downtown business. The DDA money could be used to provide a rent free location, for sponsored activities in a suitable vacant building. Some ideas would be Photography, picture matting & Framing, Golf & club making, knitting & crocheting, Art, Fly tying & fishing, Horticulture, journalism (God Know we could use new talent there) get the local associated business involved as well as WSCC and its students. The benefits to the children of our community would be enormous. And I am certain in a short amount of time most of these programs would be self sustaining and profitable. Keep the politics out of it and you triple your chances for success. Parents want opportunity for their children and the children would develop an identity as they learn skills that will serve them their whole life. Start small and share resources until you identify what will work. There are so many people with something to share who would welcome passing there skills on. A group of the right people could make this happen. Ok maybe one to many glasses of wine here but I truly believe this could provide multiple benefits for the community and downtown businesses.

[AQUAMAN]

Susan, you should be running the DDA, not Heather. Maybe you should ask about a helper job over there? You sure sound like an organizer that would be an important asset to any DDA work, thanks.

[Susan Rose]

I have been reading through the minutes of the DDA, and like a lot of what they are doing. I was not aware of the news letter; there must be a better way to communicate with the community and surrounding area to increase awareness of their calendar of events, and possible opportunities to get involved. Just Ideas not criticism, and thank you Aquaman for the support, unfortunately I am a snowbird and could not meet the commitment. I do think the boundaries should be expanded if my understanding of the DDA is correct based on the information posted. It may be a conflict of interest with the term Down Town. I must say I am slowly getting a feel for the rhythm of this forum, I am a little lost to some of the inside inferences but I am sure time will heal most of that. I can say that the Pub Crawl sounds like fun, unfortunately one of the biggest complaints I hear is of the Law Enforcements priorities.  Many people believe that they are staking out bars and have really stepped up the DUI effort. I know many people who will not go into Ludington because of the aggressive efforts in this area. Unfortunately this contributes to the decline in patronage for all merchants. I have the highest respect for Law Enforcement, and the job that they are tasked with. Unfortunately the number of MIP and DUI that have been issued in the past few years have kept many potential patrons from choosing Ludington as the reputation of the LPD evolves.

 

[XLFD]

Susan,

How would you expand the boundaries for the DDA?  Go further south on James; annex some of the proposed historical district going east up Ludington Avenue; go even further east up to Rite-Aid (bypassing the proposed HD)? 

 

You won't get any counter-argument from me about the LPD.  When they choose to ticket people who are parking downtown to work or shop, and yet allow people throughout town to park across sidewalks and block other public right-of-ways during the height of tourist season (and beyond), you know there is a priority problem.  And whereas I would agree in principle that it isn't a bad idea to keep drunk drivers off the street, there has been some anecdotal problems with LPD methods over the last few years.