The Development of Authority, part 11: An Advertising Payment?

[XLFD]

I recently noticed among recent financial records of the Ludington Downtown Development Authority a regularly occurring expense dealing with advertising.  From December 2010 to November 2011, the most recent time period (11 months) I had records for  the DDA had spent $5675.95 on advertising expenses alone.  These entries were noted and sent along via a FOIA request to the FOIA Coordinator John Shay, and it was received back very promptly this included:

 

1) Invoice for $250 for "Advertising" dated 12-20-2010 and given ref. #: 11-01-10

2) Invoice for $250 for "Advertising-Dec" dated 12-29-2010 and given ref. #: 12-01-10

Invoice for $1292.00 for "Advertising-Dec" dated 12-29-2010 and given ref. #: 12-01-10

3) Invoices for $441.00 & $250 for "Advertising" dated 2-28-2011 and given ref #: 01-31-2011

4) Invoice for $503.75 for "Advertising-Feb" dated 3-14-2010 and given ref. # 2-28-2011

5) Invoice for $250.00 for "Advertising" dated 5-23-2011 and given ref. #: 04-30-2011

6) Invoice for $670.00 for "Shoreline Media Inc, Advertising" dated 6-13-2011 and given ref. #: 5-31-2011

7) Invoice for $1181.00 for "June Advertising" dated 7-11-2011 and given ref. #: 6-30-2011

8) Invoice for $250.00 for "Advertising" dated 9-26-2011 and given ref. # 8-01-2011

9) Invoices for $250.00 & $88.20 for "Advertising" dated 10-24-2011 and given ref. #: 9-30-2011

 

One figures with all this advertising money being spent, the downtown should be getting a lot of airplay in other communties that will draw visitors into our area for all of the businesses and fun that regularly occurs in downtown Ludington.  Well, that's a good guess. but let's look at the expense records of what the DDA used for "advertising".

 

1)  Ludington Daily News invoice for "Online button and maintenance"  Ad1

2)  Ludington Daily News invoice for "Online button and maintenance" Ad2a

&  Ludington Daily News invoice for "sponsor ads" Ad2b summarized here.

3)  Ludington Daily News invoice for "combined notice"  Ad3a

&  Ludington Daily News invoice for "Online button and maintenance" Ad3b

4)  Ludington Daily News invoice for "Online retail and maintenance" Ad4

5)  Ludington Daily News invoice for "Online retail and maintenance" Ad5

6)  Ludington Daily News invoice for "Online retail and maintenance" plus a DDA ad Ad6

7)  Ludington Daily News invoice for "Online retail and maintenance" plus $900 in other ads Ad7

8)  Ludington Daily News invoice for "Online retail and maintenance" Ad8

9)  Ludington Daily News invoice for "Online retail and maintenance" Ad9a

& Ludington Daily News invoice for "Cheerleading clinic"  Ad9b

 

A couple of things are readily apparent.  The Ludington Daily News has a monopoly on the ad revenue and they regularly pay out $250 per month for online services provided by the LDN.  But let's take a closer look at what I called "Ad2b"

 

 

Community Development ( Heather Venzke-Tykoski's department) picked up the tab for advertising for several businesses (including $500 for the DDA (DD Ludington Board)).  Does it seem ethical for the taxpayers to pay $1292 to advertise for these private businesses and government organization?  Particularly, when a DDA is limitted to what it can spend money on; self-advertising and advertising for private companies are not such allowable expenses.

 

A look at the advertisers show that there is even more self-promotion by DDA officers in that Blu Moon and Sportsman's are owned by officers on the DLB/DDA, Marilyn Cunic and Julie Payment.  But Julie Payment has another position of note.  She is the Circulation and Customer Service Manager of the Ludington Daily News. 

Sounds like her job is a bit more secure since she's able to bring in money from the taxpayers via the Downtown Ludington Board, where she is a voting member and never has disclosed that her business (the LDN) benefits from this $6000 per year given to that organization.  That extra $6000 and her DDA officialdom has also worked to help assure that the DDA has not received any critical look by that news organization, even when it is highly warranted. 

Oh well, at least the locals get this $6000 worth of positive advertising in their Ludington Daily News about the Downtown Development Authority they pay over $120,000 for each year for.  What would we spend it on otherwise besides raises for City Hallers?  Scary.

[Lisa O'Brien]

I got the blurb below from the Ludington DDA website

http://www.ludington.mi.us/Ludington/2008_TIF_Plan_with_maps_for_we...

"MARKETING & RECRUITMENT: Establishing tools to effectively market
downtown Ludington to potential businesses is crucial to the growth and
expansion of the downtown retail district. Creating an overall marketing plan for Downtown events, board activities, and overall improvements will also help to
generate support and increase communication about Downtown Ludington."

Here is my question: Since the development of the DDA - what new business'es has it brought to Ludington. The only new place I can think of on Ludington avenue is The Italian restaurant (name escapes me at the moment). I know they have a larger scope than just the avenue. And I'm not trying to be negative , I'm just curious if tax payers are getting any bang for their buck.

[Sweater Cows!]

Well, aside from the rest of it I am happy to see that Nate from Backstage got some advertising. He has a nice little startup my friends and aquaintances have spent quite a few Friday nights playing Magic The Gathering.

[Colleen Plummer]

If Ludington's DDA is like Pentwater's, the money used by the DDA is an added tax payed by only the business/land owners in the retail district of the community. You also have the Main Street Program which is a great program for your downtown businesses. Grant's, matching grants and other benefits come with this program. The bills your referencing here might be covered by these programs, meaning your tax dollars are not paying for them... Ask for clarification

[Willy]

If the DDA tax is paid only by businesses then those businesses will log them as an expense and we all know any business will not dip into their own pocket and pay for it. The cost of that tax will be passed on to the customer and therefore we all are paying for that added tax.

[Colleen Plummer]

I own a business in Pentwater..... One thing is CLEAR..... I dip into my own pocket.... I'm not sure what happens in Ludington. If it's anything like "some" of the other county entities, you might be right...

[Willy]

Colleen

In your opinion, has the DDA helped businesses in Pentwater? Pentwater is so popular I would not think that a DDA would be necessary. Another thing, aren't grants obtained from Federal or State tax revenues. I don't think they come from private donations. By the way I love Pentwater and I make many trips down there to take pictures. I especially love the drive from Ludington, along the Lakeshore, to Pentwater.

[Colleen Plummer]

Well, Willy, it's had it's pro's and con's... If I had to choose one or the other I'd say it's had more of a positive effect than not. I do not like the tax, but I think it has helped our community to foster a more "people friendly/user environment" for locals and visitors. The grants etc I was referring to is a question I have too. Obviously, the money has to come from somewhere. I'm assuming it's from our general taxes, but it could be better answered by your Mainstreet coordinator.. I will attempt to find the answer to this too...

[XLFD]

DDAs all have different financing mechanisms, so Pentwater's DDA may be financed as you suggest.  But Ludington's DDA finances itself almost exclusively on property taxes (2 mils for all Ludington property nowners), and a TIF (Tax Increment Financing) of 12%.  This thread explains how TIFs work, and why your local DDA may not be as beneficial, as you thought, for everyone, particularly the citizens with the higher tax burdens:  development-of-authority-part-8-road-trip-to-blissfield

[AQUAMAN]

One thing is for certain regarding Pentwater's front main street in the last several years, there are more new stores/shops/restaurants there than previous. It's really a buzz center in the summer months, with crowded sidewalks and traffic all over the place. Quite a difference from the larger more rich Ludington Ave. where more stores are vacant, empty, eyesores, even with a strong financial advantage in the DDA and attractive harbor/beaches/carferry operations. Someone in Pentwater is on cue for prosperity and progress, that's for sure.

[Willy]

Very good points Aquaman

[Colleen Plummer]

Well, one thing I don't think "some"  Ludington business owners understand is that you have to care about your fellow businesses and not be afraid of your competitors. It's about being "fair".

An empty storefront is not a good thing in any community. Outsiders visit and wonder what's wrong....  Our businesses work fairly well together. Something funny is that most of our businesses are owned by woman, others are husband/wife combination and a handful owned by men.

[XLFD]

This could very well be the difference, Colleen.  There have been a couple of instances I have noted in Ludington where the DDA has been counterproductive to such a cooperative climate.  And when you closely look at the financial records of the DDA you can generally see why that occurs. 

For instance, in this thread we noted the DDA ships $6000 over to DDA Officer Julie Payment's parent company, the Ludington Daily News, but do you see any money filtering over to the other news/media outlet in the downtown area, WMOM? 

Meanwhile WMOM raises around $20,000 a year for local charities and non-profits by sponsoring and promoting the Lake Jump.  That money is not taken under the threat of the tax collector, but volunteered willingly by mostly local individuals and businesses.