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Economic Development Mid-Year Report (June, 2009)
 

Economic Development Mid-Year Report (June, 2009)

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    Economic Development Mid-Year Report (June, 2009) Economic Development Mid-Year Report (June, 2009) Document Transcript

    • MEMORANDUM TO: CLAY J PEARSON, CITY MANAGER FROM: ARA TOPOUZIAN, ECONOMIC DEVELOPMENT DIRECTOR SUBJECT: 2008-09 ECONOMIC DEVELOPMENT REPORT DATE: JUNE 25, 2009 This report is a mid-year summary of the economic development activities as adopted by City Council on January 5, 2009. The City of Novi continues to move in the right direction as it pertains to economic development. It is important to pay attention to maintaining property tax base as well as continuing to treat the business community as our partners. 2009 has been an unpredictable year for our local economy. In my communication with the business community, it is easily understandable that retail and small businesses are the first to struggle. This is a difficult problem to resolve as there is a lack of economic development tools available to us to assist small businesses during these times. However, the Novi Chamber of Commerce, since its reorganization, has focused on helping the Novi small business community with their seminars and events. From the city’s perspective, this was an important element missing from our community (a component the City of Novi led in many ways prior to the “re-merger”). Linda Daly and her staff have done an excellent job organizing seminars and networking events which have had a positive impact on the small business community. There are more substantial economic development tools at our disposal to assist with attraction and retention of Novi's larger tax base--our major corporations (more than 50 employees). Loan financing, workforce training funds, and MEGA are just a few of the tools available to assist larger businesses. Whereas small business will continue to struggle, corporate business growth still occurs in Novi and in the metro Detroit area. The speed of growth has naturally slowed down, but in order to survive in this environment, companies are diversifying their disciplines. Since we cannot help everyone in the Novi business community, we can make a difference and help our larger business community. A recent report (see Addendum #5) from Taubman indicates that the trend will be to move in a positive direction starting in 2010. As a hub for research and development, concentration in these sectors may prove beneficial for Novi in the long term.
    • Expansion, Attraction, and Retention, Strategy #1.0 Economic development within the City of Novi is still an important and vital component to overall sustainability. Continuation of retention, expansion, and attraction efforts must be an ongoing process. 1. Focus on major employers in Novi with personal retention visits and support (linking to resources) to our existing Novi businesses. Results will be tabulated in ACT! software and quarterly report to be provided. Retention visits have focused on the major employers in Novi. To date, 20 personal retentions visits have been made to large firms (See addendum #2). 2. Utilization of a new marketing package for use in attraction efforts. a.) In June, 2009, the marketing package was mailed to 20 award recipients of the Telematics conference held on June 2nd in Novi. b.) Marketing kit has been used on various potential new businesses coming to Novi. c.) Marketing package utilized during City Manager trip to Germany and United Kingdom. 3. Attraction efforts opportunities in intelligent transport systems (ITS) & logistics (capitalizing upon Aerotropolis initiative) firms. a.) Established a connection with the Connected Vehicle Proving Center (CVPC) in order to learn more about ITS standards and potential partnerships. Through these conversations (CVPC and UMTRI), the conclusion has been made that there needs to be more education of what ITS within the region before substantial attraction to the area can occur. California is a hub for ITS firms and until legislation is passed allowing federal funding for the ITS industry, attraction to our area may be difficult. Further work from Novi can be used to assist in promoting of the ITS industry in order to spark additional interests. b.) We were instrumental in having the Novi Chamber of Commerce adopt a resolution in support of Aerotropolis. City Council also adopted a similar resolution. a) Capitalize and promote the ITS-Michigan Annual Meeting at Rock Financial Showplace. Hosted a meeting on May 15th for over 30 economic developers from Oakland County to educate on ITS. The speaker was Dave Acton, a member of the IntelliDrive Task Force for ITS-America, a Board member of Convergence, the ITS representative for the IEEE Vehicular Technology Society Board. Received sponsorship from DTE Energy and partnered with the CVPC and CARHS. (See addendum #4) b) Facilitate meetings between economic development expertise with the educational/technical expertise ITS-MI, U of M Transportation Institute. Upon several conversations with both ITS-MI, CVPC, and the UofM Transportation Institute (UMTRI), the conclusion is that each group is still in the research stage of ITS and therefore there would be difficulty in creating/forming joint partnerships with other economic developers. 2 of 12
    • c) Quantify and identify the talent advantage of the region for engineers and separately for engineers with ITS experience. Build an education and awareness program for existing engineers to gain ITS experience. This process has not yet been approached; as the ITS is still in the research stage, it is unclear if building such an awareness program for engineers is premature. 4. The City of Novi is committed to a mini-corridor study of 1-96 (from 1-275 to Wixom Road). The study warrants serious consideration to use ITS techniques. As the application rises to list of early possibilities as expensive widening options are not realistic. More appropriate will be signage, signals, timing, and targeted work to move traffic more quietly and safely. The I-96 Area Transportation Study selection team met in May to recommend a consultant to perform the study. The team determined that the proposal submitted by The Corradino Group would best meet project goals and objectives. The State Administrative Board will consider the team's recommendation in August, and it is expected that Corradino will be under contract by September/October. Incentives, Strategy #2.0 On July 28, 2008, Council adopted a strategy for participating in Hi-Tech MEGA projects. Funds will be allocated for public infrastructure improvements such as drive approach, road curb-cuts, pervious asphalt, traffic signage and/or bioswale/rain garden, to be determined upon submission of a final site plan. Review of MEGA projects with status on businesses that received local contribution. Updated report on MEGA projects/status to be submitted in December, 2009. Currently, one MEGA project for 2009 (Patrick Energy Services) has located in Novi. Internal Structure of Neighborhood and Business Relations Group, Strategy #3.0 a) It is recommended that a yearly meeting (at the end of the mainstream construction season) between Community Development and local developers take place to allow for continued evaluation of Novi’s plan review process and to obtain feedback and suggestions for continued improvements. Preliminary discussion has taken place with Interim Community Development Director Charles Boulard, looking to organize a meeting shortly after the construction season has ended to yield better attendance. b) Participant survey is important to Community Development and to understand and recognize the issues concerning the 1,600 local businesses in Novi. Creation of an online survey and allowing for businesses to identify issues they face on a normal basis will help identify future goals for the Business Relations Group. This survey may roll into the above (a) goal for consistency. 3 of 12
    • Marketing, Strategy a) Promoting investnovi.org website, Strategy #4.0 Investnovi.org was created as both a search engine for site selectors to learn more about the Novi business climate and also for the local business community to communicate its accomplishments. Visibility of this site is vital for its usefulness. a.) eBiz was formed as not only a tool to help promote what local business is doing, but to also drive interest to InvestNovi.org. b.) A 7ft banner was created earlier in the year for the purpose of promoting the website and since has been used at Walsh College, Novi Chamber expo and also the Oakland County Economic Forecast lunch. Presence of banner and information will be at the upcoming (July 22nd) regional International Council of Shopping Centers show at Rock Financial Showplace. Additional venues will be targeted for this placement. c.) Since it is costly to place ads in magazines or websites promoting InvestNovi.org, inexpensive forms of media (Ch. 13, cable shows, LinkedIn, etc.) are being used until research is complete (by August, 2009) and an action plan can be devised. Currently, other avenues of promoting the website are being investigated. b) Distribution of Why Novi? DVD and Marketing Package, Strategy #4.1 Promotional visits to the local large realtor/broker firms including CB Richard Ellis, Friedman Real Estate Group, Grubb & Ellis, Signature Group and Colliers International will be conducted. Visits will include distributing the DVD and marketing package to these firms. Ara has visited Grubb & Ellis, CB Richard Ellis and Signature Associates to date. Most brokerage firms are not interested in meeting and have indicated poor economic conditions have slowed their business. All communications have encouraged promoting their properties on InvestNovi.org c) Advertising, Strategy #4.2 Advertise and promote InvestNovi.org in a national publication, SITE Selection. The magazine is mailed to over 44,000 high level site selectors around the globe and this issue (January/February, 2009) will focus on Michigan with additional distribution to four trade shows, three of which are overseas. Advertisement was placed in SITE Selection magazine (through cooperative program with City and larger property developers). Measurable results are unclear. Looking into specialized advertising opportunities as they pertain to pertinent trade shows and airline/airport publications. d) Business Recognition Awards, Strategy #4.3 The Business Recognition Awards program will continue into 2009 with a small task force consisting of members from the EDC, Chamber, and local media (Novi News). Awards will be given to five local (small and large) businesses with a reception and special awards presentation form City Council. Currently in the process of adapting a new process for the awards program this year, taking into account that 2008 was the first year of these awards. 4 of 12
    • Business Assistance Teams (BAT), Strategy #5.0 BAT visits have been very successful in Novi with a total of 57 visits since inception. New goals for future visits involve restructuring and creating specialized business visits to the small business community. 1. Increase BAT visits to monthly with a minimum of 50 visits in 2009. 2. Create additional BAT teams that will allow for the ability to increase involvement of local business professionals and targeted industries. It is suggested that each BAT team contain a certified public accountant. 3. Prior to any BAT visit, a biography sheet of BAT professionals will be furnished to the business along with advance questions that will be discussed in order to make the most of each visit. 4. Notifications of all future BAT visits will be done via email. 5. Measure results by compiling information that would include business name, type of business, issues that a business faces, recommendations given, and feedback from the business. To date, two BAT visits for mid-July. Retail Signage Issues for Ordinance Review, Strategy #6.0 Retail businesses have indicated difficulties with Novi’s sign ordinance, such as the ability to allow additional signage promoting an event or special offer from the store. It is proposed that “Sandwich Saturday,” the first Saturday of the month, businesses will be allowed to have a sandwich board in front of their business. To date, this goal has not been approached. Coffee & Conversations, Strategy #7.0 Focus on five future seminars will carry the thinking locally theme and pertain to present day issues businesses are experiencing. Programming will include sessions on updating a resume’, marketing your company on the Internet, and understanding unemployment (co-sponsor with Michigan Works!) Initial seminars were set up in January and then reconfigured this past May. Speakers are being arranged by the Novi Chamber of Commerce and will be held at the Novi Civic Center. The schedule is as follows: August 19, 2009 (Michigan Works! Representative) October 20, 2009 (Social Media) February 16, 2010 (Marketing Your Business) May 18, 2010 – To be determined Economic Development Certification CEcD, Strategy #8.0 Through the Michigan Economic Development Association (MEDA), courses and testing to become a Certified Economic Developer (CEcD) will become available for 2009-2010. This will reduce the overall cost of travel expenses and speed up the overall process of becoming certified. Expenses would be over a two-year period. There are 5 remaining courses. Courses range from two to three days in length and there is a written and oral exam at the end of the process. The cost will be at a discounted rate of $2500 per person for the remaining courses. (This is a $600 savings due to IEDC membership). Classes have been made available through MEDA allowing a savings in travel expenses. Ara has signed up for all five remaining courses to be completed by 2010. 5 of 12
    • Film Office, Strategy, #9.0 As film companies utilize Novi as a location shoot, a compiled list of Novi business resources will be available on the Novi Film Office website (www.investnovi.org/film) and available as a PDF download. A complete list of Novi-based resources is now available on the InvestNovi.org website under the Novi Film Office link. To date, no films have submitted application to film in Novi; however two still photography shoots took place earlier in the year. Small Business Expo, Strategy #10.0 The City of Novi and the Novi Chamber will partner to host and organize a small business to business expo. This was the first time the Novi Chamber has held a business-to-business expo and the City of Novi co-sponsored the event held in April, 2009. A successful event with over 200 attendees, held at the Hotel Baronette. Additional Economic Development Projects (Not specified in January, ’09 adopted goals) Redevelopment Survey City Council’s ordinance review committee identified certain properties within Novi which were felt ripe for redevelopment. Realizing that these are difficult current economic times, we asked these questions expressing best-case scenarios. Neighborhood & Business Relations conducted the survey of the telephone to each property owner in order to answer and compile the following questions: 1. Please list in order of importance what features (i.e., landscaping, parking, façade, etc.), if any, you would like to update on your property. 2. What is preventing you from updating the features mentioned above? 3. What could the City do to better assist you with any renovations you wish to make? 4. Please list any other concerns you have regarding redevelopment or renovation of existing building sites. The compiled data is attached as Addendum #1. Council of Local Authorities for International Relations (CLAIR) Visit to Novi In April, organized a week-long program for ten Japanese governmental officials as they visited Novi. Local Auto Supplier Survey Currently in the process of compiling a database of Novi based automotive suppliers in order to contact each of them to inquire how their business has been affected by the Big Three auto industry. To be completed by end of August, 2009 6 of 12
    • Trade Mission In order to be proactive in business attraction practices, developing a trade mission or actively participating in an existing trade mission has become essential. Currently in the process of researching trade shows/conferences that take place around the USA and overseas. Focus of the trade shows will center on industries: alternative energy, automotive, medical devices, and Intelligent Transportation Systems (ITS – car connectivity). Shows will have wide appeal (large attendance/diversified audience) for potential leads for business attraction. One trade show in particular, Hannover, Messe held in Hannover, Germany, (http://www.hannovermesse.de/homepage_e) is being seriously considered as this is a show which features eight different industries under one event. (ie. Automotive, energy, hi-tech, and more). Oakland County and the Detroit Regional Partnership has participated in this show for several years and highly recommends participation in it. As we look to diversify our marketing, it is becoming increasing apparent that lead generation will come from personal retention visits and participation in global networking opportunities. (See addendum #4) To be completed by end of August, 2009 Novi Technology DVD Novi has a rich abundance of high technology firms that would be featured in this DVD for business attraction and promotion. Firms such as Autodesk, Harman/Becker, Carcoustics, ITC, Vector CANTech all have unique aspects in their business that integrate the latest in technology. The DVD would focus only on the hi-tech businesses in Novi and promoted at trade shows, YouTube and InvestNovi.org. To be completed by end of October, 2009 c. Pam Antil, Assistant City Manager Cindy Uglow, Small Business Manager 7 of 12
    • Addendum #1: Results of Staff interviews with property owners of Potential Redevelopment Areas identified by City Council Ordinance Review Committee SE Corner Grand River and Novi; 43381 Grand River Left three voicemails and no return phone call as of yet. Oak Pointe Plaza; 22240 Novi Rd • Would like to update façade, followed by parking lot updates; followed by landscaping • Lack of money is preventing the developer from updating the property • The only way the city could assist is by lowering taxes • Not prepared to comment on concerns with renovation or redevelopment of existing building sites. NW Corner of 10 Mile and Meadowbrook; 41600 10 Mile • Number one priority is to add another free-standing structure to the current property. Second most important feature is to update the parking lot with expansion and improvement. • Money is a limitation, “absolutely the issue” preventing the property owner from updating and renovating • Finding another tenant for the new building is also a limitation. • Facing no major issues from the city at this time. In the past the only issues have been in regards to regulation requirements. Money is the major issue at the moment because banks aren’t lending. • No concerns regarding redevelopment or renovation of existing building sites at this time. SW Corner of 10 Mile and Meadowbrook/10 Mile and Haggerty; 41563,41431,39415 10 Mile • Would really like to update the façade and improve the exterior image of the buildings • Would also like to improve the parking lots with striping and paving • Limited by rent going backwards and vacancy rates, which are increasing • Doesn’t see how the city can help without giving money away. Thinks the city would have to do a tax assessment and that would be the only way the developers would be able to update properties. There is no cash flow in order to be able to renovate and update. • Primary concern with other sites in Novi is the new buildings that are coming up. Interested to know how the sites are being financed and who is renting the renovated buildings. • Thinks this path could be damaging because there are no tenants in the market. It’s a risky time and buildings need secure, strong tenants in order to flourish. NW Corner of 13 Mile and Old Novi; 2219,2215,2213,2205 Novi • All of his properties are listed for sale • Would like to see the city do something with the corner where the old amusement park used to be. Thinks it would increase traffic flow. It was supposed to be a hotel or a bandshell but that plan was changed, but he thinks the site needs to be updated. • The city is tough on everybody. It needs to focus on filling up empty buildings and get them rented by companies rather than encourage the building of new buildings. It is very important to rent what we already have. NW Corner of 13 Mile and Old Novi; 2150 Novi • Would like to reseal and stripe the parking lot, followed by a complete replacement of wooden siding with vinyl siding that doesn’t need to be painted. • Business has been down for three years with a 5-10% monthly loss. The company has reduced from 83 to 52 employees and pay cuts have been made in order to stay afloat. Bad times for renovations. • Didn’t think the city could do much. Would like to see the city give out interest-free loans for 3-5 years. Any time period less than that would not be beneficial. • Has no major concerns with existing building and renovation. The loss in the lawsuit with the builders was upsetting. Would really like to see more development on the corner of 13 and Old Novi. The empty gas station and lots need new businesses in order to up traffic in the area. Also, business has been hurt by Decker connecter. 8 of 12
    • 14 Mile and East Lake (Ole Ole) • Would like to update the landscaping, but is limited by the lack of maintenance of property across the street o Would be more encouraged to update her property if the city would intervene and encourage the property owner across the street to take care of weeds and grass • Would also like to pave the parking lot, but water from lake runs downhill into the parking lot • Owner sees no incentive in updating own property because the conditions of the property surrounding her are so “trashy” • City could assist by helping to renovate the surrounding area to make it more appealing • No other concerns at this time K & S Plaza, 30900 Beck Rd • Not looking for much renovation at the time, but would like to update landscaping • Always looking to do things, but the time isn’t right for renovations • Lack of money and bad economic conditions are limiting any plans for renovation • Nothing city can do at this time SE Corner Taft and Grand River; 26444 Taft • Left three voicemails but no return phone call as of yet. SE Corner Taft and Grand River; 26560 Taft • Contact information for listed owners, is unlisted NE and NW Corner of Taft and Grand River Ave.; 45390 Grand River • Did not have anything to say in regards to updates on property because the property is currently listed for sale. South Side of Grand River from Novi to Beck; 43755 Grand River • Would like to renovate the building (interior and exterior) to make it look nicer o Would like to start with exterior of the building • Limited by the difficulty of dealing with the City of Novi o Not from personal experience; heard of troubles with other small business owners in the area • Dealing with the city and the tough economic times are the major limiting factors preventing the property owner from updating the property • Has no other concerns at this time South Side of Grand River from Novi to Beck; 44311 Grand River • Left two voicemails with receptionist and received voicemail back • Does not seem to be interested in answering questions but will try to contact again Novi Rd. from Grand River to 10 Mile; 24800 Novi • Because of the impending Novi Rd. expansion, XXX absolutely has to do certain updates and renovations, despite that, their “wish list” is as follows o 1) Warehouse expansion o 2) Landscaping (required by road expansion) o 3) Building Access (required by road expansion) • The economic conditions are currently the largest barrier to renovation. Also, the expansion of the warehouse is inhibited because it would eliminate the grandfather clauses on the property. They need to expand but the cost of meeting city codes and determining what new codes need to be met is limiting them • XXX understands that codes are necessary but they would be interested in help with the code compliance process. Also, they would like to see more relaxed interpretation of codes by the city. • Due to the expansion of Novi Rd., neighboring businesses will be negatively affected by the steep road that will be built. This will be detrimental to business because trucks leaving the XXX will cause the congestion of traffic and the road itself could reduce business traffic. • Liked the Brownfield redevelopment project; thinks it’s a positive thing and would like to see more of it. 9 of 12
    • Novi Rd. from Grand River to 10 Mile; 24259 Novi • Left two voicemails, waiting for call back. SE Corner Grand River & Novi Rd.; 4338114 Grand River; • Would like to update the façade (has been in this process for over a year now) • Would also like to improve exterior lighting. There is hardly any lighting and the one public light on the corner does not work, it’s always off. • Has difficulty dealing with the city, “it’s a hassle to do anything with the City of Novi” • Even after submitting prints, drawings and reviews, it “takes forever to do something simple” • The building is a historical building (over 100 years old) and the owner would like to upgrade and renovate with city compliance, but sometimes feels that he is being asked to do things that he shouldn’t have to do. o In past, he spent $60,000 on exterior electric renovation which he feels that he shouldn’t have to do, but he did it anyway o The building is old and upgrades will take forever, so he’s looking for more support from the city. • Current state of the economy is also limiting renovations • Bottom line, however, is a need for more cooperation from the city to better work with him. It is a two-way street between businesses and the city and working together will be better for everyone. • The owner hopes that the city is truly invested in increasing commercial properties in the city because of the increased revenue it will bring. The city of Novi is one of the best cities in Michigan but when speaking to other people, the owner has seen that the perception is that the city is difficult to deal with and people are afraid of the process of getting something done. • The owner is happy to own property in the city and wants more people to move in commercially but he really believes that the city needs to help property owners better understand rules and codes so it is easier to comply with them. (The above represents a ’web cloud’ which visualizes word frequencies throughout a block of text.) 10 of 12
    • Addendum #2: Retention Visits for Major Employers (50 and more) January through June 2009 Retention visits have been made to the following major employers in Novi: Alcan Autodesk Caparo Comau CVS of Michigan Eberspacher Fox Run Frank W. Kerr Freescale Harman/Becker Automotive Intier/Magna Michigan CAT Molecular Innovations Numatics Rock Financial Showplace Ryder System St. John/Providence Hospital SunGlo TATA Vector CANTech Addendum #3: The International Economic Development Council (IEDC) chart on marketing on a global scale 11 of 12
    • Addendum #4 12 of 12
    • Addendum #5 This knowledge base is solidified by a tight network of R&D and engineering know-how Creates an Creates an indisplaceable indisplaceable network where network where scientists, scientists, engineers and engineers and technologists technologists create ideas, create ideas, exchange exchange knowledge knowledge and prove and prove concepts concepts Source: Center for Automotive Research 14
    • Not your Grandfather’s car – Detroit’s Knowledge Base Aerospace Engineering Telematics Artificial Intelligence Supply Chain Management Bio-Mechanical Engineering Robotics Chemical Engineering Nanotechnology Computer Graphics Metrology and Instrumentation Electronics Mechanical Engineering Energy Research Material Science Engineering Ergonomics and Safety Marketing Science Human Factor and Cognitive Engineering Intelligent Highway System 15
    • Putting all these challenges and progress into perspective, current signs point to an economic turnaround in 2010 Moody’s Economy.com GDP Growth Positive Signs Positive Signs Forecast for S.E. Michigan (April 2009) •• Housing becoming stabilized in Metro Detroit Housing becoming stabilized in Metro Detroit ◦ Foreclosure rate decline 6% year-over-year in the first ◦ Foreclosure rate decline 6% year-over-year in the first 2.0% quarter of 2009 quarter of 2009 ◦ One in every 275 housing units face foreclosure in Metro ◦ One in every 275 housing units face foreclosure in Metro Sequential Real GDP Change (Chained 2000 $) 1.5% Detroit compared to one in every 159 nationally Detroit compared to one in every 159 nationally 1.0% •• Pent-up demand for autos Pent-up demand for autos ◦ Larry Summers, top White House economic adviser, ◦ Larry Summers, top White House economic adviser, 0.5% noted that the current annualized sales of nine million is noted that the current annualized sales of nine million is well below the 14 million necessary for replacement and well below the 14 million necessary for replacement and 0.0% rising population rising population '09 '09 '09 '09 '10 '10 '10 '10 '11 '11 '11 '11 -0.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 •• Positive impacts from potential policy changes Positive impacts from potential policy changes ◦ Expansion of stem cell research guidelines – Univ. of ◦ Expansion of stem cell research guidelines – Univ. of -1.0% Michigan has already received two donations in excess Michigan has already received two donations in excess of $20 million to expand stem cell research of $20 million to expand stem cell research -1.5% ◦ “Cash-for-clunkers” – likely to spur auto sales, benefiting ◦ “Cash-for-clunkers” – likely to spur auto sales, benefiting the entire industry the entire industry -2.0% ◦ Climate control regulations – may boost area’s efforts in ◦ Climate control regulations – may boost area’s efforts in -2.5% clean technologies (e.g., renewable energy sources like clean technologies (e.g., renewable energy sources like wind and solar power, electric car batteries) wind and solar power, electric car batteries) -3.0% -- Federal level – e.g., EPA regulation of carbon Federal level – e.g., EPA regulation of carbon dioxide emissions (through new legislation or Clean dioxide emissions (through new legislation or Clean -3.5% Air Act), cap-and-trade programs Air Act), cap-and-trade programs -- State level – e.g., California regulation of State level – e.g., California regulation of greenhouse gas emissions, Michigan requiring 10% greenhouse gas emissions, Michigan requiring 10% of the state’s electricity be generated from renewable of the state’s electricity be generated from renewable energy by 2015 energy by 2015 Sources: The Detroit News (Apr. 10, 2009, Apr. 16, 2009), The Economist (Apr. 4, 2009), Los Angeles Times (Apr. 24, 2009), Moody’s Economy.com (GDP forecasts), The Wall Street Journal (Apr. 18, 2009), Taubman analysis 28
    • 2009 STATE EQUALIZED VALUES VS. TAXABLE VALUES 67,858 2009 62,416 74,491 2008 64,745 77,331 2007 64,720 76,439 2006 62,133 73,459 2005 58,862 70,296 2004 55,986 67,085 2003 SEV 53,179 TV 62,829 2002 50,688 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 (Millions of Dollars) Page 6
    • 2009 TOTAL STATE EQUALIZED VALUE 2009 TOTAL TAXABLE VALUE 67,858,986,149 62,416,676,895 Agricultural Agricultural Personal Commercial 0.2% Personal 0.1% 5.8% Commercial 17.5% 6.3% 19.0% Industrial Industrial 6.3% 6.2% Developmental 0.0% Developmental Residential 0.0% 68.7% Residential 69.9% Page 7
    • 2009 REAL PROPERTY STATE EQUALIZED VALUE 2009 PERSONAL PROPERTY STATE EQUALIZED VALUE 63,909,419,815 94.18% 3,949,566,334 5.82% Agricultural Utility 0.2% Commercial 18.5% 20.1% Industrial 6.7% Commercial Developmental 52.8% 0.0% Residential Industrial 73.0% 28.7% Page 8
    • 2009 REAL PROPERTY TAXABLE VALUE 2009 PERSONAL PROPERTY TAXABLE VALUE 58,471,419,235 93.7% 3,945,257,660 6.3% Agricultural Utility 0.1% Commercial 18.5% 18.7% Industrial 6.6% Commercial Developmental 52.8% 0.0% Residential Industrial 74.6% 28.7% Page 9
    • 2009 OAKLAND COUNTY EQUALIZATION COMPARISON OF ASSESSED AND TAXABLE VALUES % % 2008 2009 CHANGE 2008 2009 CHANGE TOWNSHIPS ASSESSED ASSESSED ASSESSED TAXABLE TAXABLE TAXABLE ADDISON 461,100,098 400,752,800 -13.09% 351,210,328 333,414,710 -5.07% BLOOMFIELD 4,492,380,886 4,115,224,310 -8.40% 3,948,259,831 3,878,712,490 -1.76% BRANDON 646,556,072 577,402,804 -10.70% 553,312,163 524,810,242 -5.15% COMMERCE 2,514,831,380 2,201,477,990 -12.46% 2,164,569,190 2,023,649,170 -6.51% GROVELAND 318,345,980 272,032,520 -14.55% 254,856,740 241,158,000 -5.38% HIGHLAND 1,012,874,380 878,814,590 -13.24% 843,400,800 795,399,990 -5.69% HOLLY 427,697,710 360,883,320 -15.62% 341,948,040 313,143,420 -8.42% INDEPENDENCE 1,986,844,500 1,793,803,370 -9.72% 1,707,642,610 1,627,952,280 -4.67% LYON 1,093,123,670 1,017,824,670 -6.89% 838,843,810 832,256,690 -0.79% MILFORD 1,130,011,830 1,064,696,480 -5.78% 982,827,570 974,343,140 -0.86% NOVI 11,448,120 10,039,710 -12.30% 10,502,770 9,966,250 -5.11% OAKLAND 1,408,365,690 1,262,444,730 -10.36% 1,284,693,460 1,193,187,370 -7.12% ORION 2,013,926,910 1,799,096,535 -10.67% 1,864,368,180 1,723,524,795 -7.55% OXFORD 1,050,987,240 919,920,160 -12.47% 885,711,470 813,724,840 -8.13% ROSE 339,758,810 317,962,384 -6.42% 259,359,231 260,695,767 0.52% ROYAL OAK 66,048,330 60,660,570 -8.16% 45,941,130 46,045,510 0.23% SOUTHFIELD 1,385,142,910 1,212,721,430 -12.45% 1,137,668,140 1,095,153,070 -3.74% SPRINGFIELD 783,906,660 701,446,900 -10.52% 693,117,970 653,004,120 -5.79% WATERFORD 3,156,915,170 2,913,133,370 -7.72% 2,706,150,524 2,648,467,760 -2.13% WEST BLOOMFIELD 4,640,566,810 4,169,667,080 -10.15% 4,183,812,700 3,966,224,170 -5.20% WHITE LAKE 1,457,792,450 1,313,341,370 -9.91% 1,262,456,120 1,207,406,400 -4.36% TOTAL TOWNSHIPS 30,398,625,606 27,363,347,093 -9.98% 26,320,652,777 25,162,240,184 -4.40% CITIES AUBURN HILLS 2,523,617,565 2,377,102,620 -5.81% 2,290,661,390 2,222,364,040 -2.98% BERKLEY 658,680,808 595,450,680 -9.60% 534,407,938 524,179,820 -1.91% BIRMINGHAM 2,707,851,781 2,370,175,765 -12.47% 2,100,386,533 2,024,142,830 -3.63% BLOOMFIELD HILLS 1,083,260,180 947,655,860 -12.52% 897,045,090 849,145,070 -5.34% CLARKSTON VILLAGE 61,023,080 55,526,240 -9.01% 48,217,370 48,029,340 -0.39% CLAWSON 488,393,150 440,690,250 -9.77% 408,484,640 400,519,920 -1.95% FARMINGTON 450,501,300 414,589,100 -7.97% 419,820,960 406,024,900 -3.29% FARMINGTON HILLS 4,743,497,740 4,297,748,050 -9.40% 4,411,543,260 4,165,008,570 -5.59% FENTON 246,700 227,300 -7.86% 148,590 130,100 -12.44% FERNDALE 871,028,260 795,225,850 -8.70% 650,809,480 648,326,070 -0.38% HAZEL PARK 453,263,830 369,089,000 -18.57% 345,542,700 320,742,860 -7.18% HUNTINGTON WOODS 425,551,600 394,081,030 -7.40% 323,814,230 325,711,090 0.59% KEEGO HARBOR 138,474,850 119,847,840 -13.45% 115,894,820 108,400,370 -6.47% LAKE ANGELUS 103,695,910 93,949,840 -9.40% 69,662,380 69,674,610 0.02% LATHRUP VILLAGE 214,336,500 173,890,140 -18.87% 189,353,180 167,739,650 -11.41% MADISON HEIGHTS 1,354,849,240 1,270,336,750 -6.24% 1,207,191,170 1,192,371,700 -1.23% NORTHVILLE 185,603,902 159,348,880 -14.15% 175,333,758 157,668,013 -10.08% NOVI 3,876,954,790 3,742,061,910 -3.48% 3,582,448,240 3,554,943,630 -0.77% OAK PARK 908,018,940 814,775,470 -10.27% 728,574,330 714,687,650 -1.91% ORCHARD LAKE 455,279,080 417,149,560 -8.37% 394,399,250 382,286,720 -3.07% PLEASANT RIDGE 175,665,710 162,966,800 -7.23% 133,331,350 133,742,860 0.31% PONTIAC 1,952,517,700 1,674,413,280 -14.24% 1,472,949,920 1,377,212,650 -6.50% ROCHESTER 872,092,980 807,486,870 -7.41% 770,822,930 742,062,730 -3.73% ROCHESTER HILLS 4,042,390,520 3,728,995,735 -7.75% 3,742,654,190 3,600,917,135 -3.79% ROYAL OAK 2,986,475,590 2,808,167,535 -5.97% 2,455,393,430 2,441,787,175 -0.55% SOUTHFIELD 4,311,333,490 3,965,507,832 -8.02% 3,752,556,640 3,656,625,252 -2.56% SOUTH LYON 446,341,220 387,587,240 -13.16% 401,329,860 362,812,480 -9.60% SYLVAN LAKE 133,966,750 118,116,520 -11.83% 105,523,320 103,625,050 -1.80% TROY 6,227,094,050 5,838,889,239 -6.23% 5,562,596,010 5,459,779,936 -1.85% WALLED LAKE 303,187,730 265,643,560 -12.38% 255,616,850 239,842,670 -6.17% WIXOM 937,261,010 888,942,310 -5.16% 878,809,750 853,931,820 -2.83% TOTAL CITIES 44,092,455,956 40,495,639,056 -8.16% 38,425,323,559 37,254,436,711 -3.05% TOTAL COUNTY 74,491,081,562 67,858,986,149 -8.90% 64,745,976,336 62,416,676,895 -3.60% Page 10
    • OAKLAND COUNTY 2009 DISTRIBUTION OF ASSESSED AND EQUALIZED VALUES BY CITIES ASSESSING REAL PROPERTY PERSONAL PROPERTY DISTRICT ASSESSED EQUALIZED TAXABLE ASSESSED EQUALIZED TAXABLE AUBURN HILLS 1,944,768,850 1,944,768,850 1,790,030,270 432,333,770 432,333,770 432,333,770 BERKLEY 581,809,310 581,809,310 510,538,450 13,641,370 13,641,370 13,641,370 BIRMINGHAM 2,314,233,625 2,314,233,625 1,968,200,690 55,942,140 55,942,140 55,942,140 BLOOMFIELD HILLS 924,812,950 924,812,950 826,302,160 22,842,910 22,842,910 22,842,910 CLARKSTON VILLAGE 53,813,810 53,813,810 46,316,910 1,712,430 1,712,430 1,712,430 CLAWSON 425,965,830 425,965,830 385,805,850 14,724,420 14,724,420 14,714,070 FARMINGTON 399,867,420 399,867,420 391,303,220 14,721,680 14,721,680 14,721,680 FARMINGTON HILLS 4,021,545,470 4,021,545,470 3,888,810,500 276,202,580 276,202,580 276,198,070 FENTON 224,500 224,500 127,300 2,800 2,800 2,800 FERNDALE 750,963,420 750,963,420 604,063,640 44,262,430 44,262,430 44,262,430 HAZEL PARK 353,625,370 353,625,370 305,279,230 15,463,630 15,463,630 15,463,630 HUNTINGTON WOODS 390,875,200 390,875,200 322,505,260 3,205,830 3,205,830 3,205,830 KEEGO HARBOR 116,880,260 116,880,260 105,432,790 2,967,580 2,967,580 2,967,580 LAKE ANGELUS 93,483,280 93,483,280 69,208,050 466,560 466,560 466,560 LATHRUP VILLAGE 169,627,940 169,627,940 163,489,230 4,262,200 4,262,200 4,250,420 MADISON HEIGHTS 1,127,870,110 1,127,870,110 1,049,905,060 142,466,640 142,466,640 142,466,640 NORTHVILLE 156,577,690 156,577,690 154,896,823 2,771,190 2,771,190 2,771,190 NOVI 3,508,891,750 3,508,891,750 3,321,773,470 233,170,160 233,170,160 233,170,160 OAK PARK 777,240,430 777,240,430 677,152,610 37,535,040 37,535,040 37,535,040 ORCHARD LAKE 413,364,910 413,364,910 378,502,070 3,784,650 3,784,650 3,784,650 PLEASANT RIDGE 158,868,730 158,868,730 129,644,790 4,098,070 4,098,070 4,098,070 PONTIAC 1,445,867,000 1,445,867,000 1,148,666,370 228,546,280 228,546,280 228,546,280 ROCHESTER 767,523,800 767,523,800 702,099,660 39,963,070 39,963,070 39,963,070 ROCHESTER HILLS 3,537,751,725 3,537,751,725 3,409,673,125 191,244,010 191,244,010 191,244,010 ROYAL OAK 2,697,152,645 2,697,152,645 2,330,772,285 111,014,890 111,014,890 111,014,890 SOUTHFIELD 3,533,874,662 3,533,874,662 3,225,933,932 431,633,170 431,633,170 430,691,320 SOUTH LYON 371,908,190 371,908,190 347,133,430 15,679,050 15,679,050 15,679,050 SYLVAN LAKE 114,907,880 114,907,880 100,416,410 3,208,640 3,208,640 3,208,640 TROY 5,390,789,009 5,390,789,009 5,011,679,706 448,100,230 448,100,230 448,100,230 WALLED LAKE 252,648,120 252,648,120 226,847,230 12,995,440 12,995,440 12,995,440 WIXOM 759,069,730 759,069,730 724,059,240 129,872,580 129,872,580 129,872,580 TOTAL CITIES 37,556,803,616 37,556,803,616 34,316,569,761 2,938,835,440 2,938,835,440 2,937,866,950 TOTAL TOWNSHIPS 26,352,616,199 26,352,616,199 24,154,849,474 1,010,730,894 1,010,730,894 1,007,390,710 TOTAL COUNTY 63,909,419,815 63,909,419,815 58,471,419,235 3,949,566,334 3,949,566,334 3,945,257,660 Page 18
    • OAKLAND COUNTY 2009 DISTRIBUTION OF ASSESSED AND EQUALIZED VALUES BY CITIES REAL / PERSONAL ASSESSING NUMBER ASSESSED EQUALIZED % of TAXABLE % of DISTRICT OF ACRES VALUE VALUE COUNTY VALUE COUNTY AUBURN HILLS CITY 10,655.97 2,377,102,620 2,377,102,620 3.50% 2,222,364,040 3.56% BERKLEY CITY 1,652.78 595,450,680 595,450,680 0.88% 524,179,820 0.84% BIRMINGHAM CITY 3,074.81 2,370,175,765 2,370,175,765 3.49% 2,024,142,830 3.24% BLOOMFIELD HILLS CITY 3,210.98 947,655,860 947,655,860 1.40% 849,145,070 1.36% CLARKSTON VILLAGE CITY 323.50 55,526,240 55,526,240 0.08% 48,029,340 0.08% CLAWSON CITY 1,403.04 440,690,250 440,690,250 0.65% 400,519,920 0.64% FARMINGTON CITY 1,700.58 414,589,100 414,589,100 0.61% 406,024,900 0.65% FARMINGTON HILLS CITY 21,312.98 4,297,748,050 4,297,748,050 6.33% 4,165,008,570 6.67% FENTON CITY 11.00 227,300 227,300 0.00% 130,100 0.00% FERNDALE CITY 2,498.28 795,225,850 795,225,850 1.17% 648,326,070 1.04% HAZEL PARK CITY 1,799.66 369,089,000 369,089,000 0.54% 320,742,860 0.51% HUNTINGTON WOODS CITY 929.67 394,081,030 394,081,030 0.58% 325,711,090 0.52% KEEGO HARBOR CITY 350.69 119,847,840 119,847,840 0.18% 108,400,370 0.17% LAKE ANGELUS CITY 1,041.83 93,949,840 93,949,840 0.14% 69,674,610 0.11% LATHRUP VILLAGE CITY 969.91 173,890,140 173,890,140 0.26% 167,739,650 0.27% MADISON HEIGHTS CITY 4,534.88 1,270,336,750 1,270,336,750 1.87% 1,192,371,700 1.91% NORTHVILLE CITY 640.85 159,348,880 159,348,880 0.23% 157,668,013 0.25% NOVI CITY 20,018.57 3,742,061,910 3,742,061,910 5.51% 3,554,943,630 5.70% OAK PARK CITY 3,253.18 814,775,470 814,775,470 1.20% 714,687,650 1.15% ORCHARD LAKE CITY 2,635.05 417,149,560 417,149,560 0.61% 382,286,720 0.61% PLEASANT RIDGE CITY 363.74 162,966,800 162,966,800 0.24% 133,742,860 0.21% PONTIAC CITY 12,919.62 1,674,413,280 1,674,413,280 2.47% 1,377,212,650 2.21% ROCHESTER CITY 2,447.62 807,486,870 807,486,870 1.19% 742,062,730 1.19% ROCHESTER HILLS CITY 21,060.12 3,728,995,735 3,728,995,735 5.50% 3,600,917,135 5.77% ROYAL OAK CITY 7,573.62 2,808,167,535 2,808,167,535 4.14% 2,441,787,175 3.91% SOUTHFIELD CITY 16,824.81 3,965,507,832 3,965,507,832 5.84% 3,656,625,252 5.86% SOUTH LYON CITY 2,208.81 387,587,240 387,587,240 0.57% 362,812,480 0.58% SYLVAN LAKE CITY 527.09 118,116,520 118,116,520 0.17% 103,625,050 0.17% TROY CITY 21,407.94 5,838,889,239 5,838,889,239 8.60% 5,459,779,936 8.75% WALLED LAKE CITY 1,513.69 265,643,560 265,643,560 0.39% 239,842,670 0.38% WIXOM CITY 5,985.62 888,942,310 888,942,310 1.31% 853,931,820 1.37% TOTAL CITIES 174,850.89 40,495,639,056 40,495,639,056 59.68% 37,254,436,711 59.69% TOTAL TOWNSHIPS 405,695.14 27,363,347,093 27,363,347,093 40.32% 25,162,240,184 40.31% TOTAL COUNTY 580,546.03 67,858,986,149 67,858,986,149 100.00% 62,416,676,895 100.00% Page 19
    • OAKLAND COUNTY 2009 ANALYSIS BY CLASS OF REAL PROPERTY VALUATIONS BY CITIES (1) ASSESSED VALUES BY CLASS (2) EQUALIZATION FACTOR (3) EQUALIZED VALUES BY CLASS (4) PARCEL COUNT (5) TAXABLE VALUE ASSESSING AGRICULTURAL COMMERCIAL INDUSTRIAL RESIDENTIAL TIMBER DEVELOPMENTAL TOTAL REAL DISTRICT REAL REAL REAL REAL CUT OVER REAL PROPERTY LATHRUP VILLAGE CITY 1 0 33,605,020 0 136,022,920 0 0 169,627,940 2 1.0000 1.0000 1.0000 3 0 33,605,020 0 136,022,920 0 169,627,940 4 105 1,764 1,869 5 0 29,205,630 0 134,283,600 0 163,489,230 MADISON HEIGHTS CITY 1 0 299,810,930 247,232,390 580,826,790 0 0 1,127,870,110 2 1.0000 1.0000 1.0000 1.0000 3 0 299,810,930 247,232,390 580,826,790 0 1,127,870,110 4 708 557 10,257 11,522 5 0 276,390,960 238,193,150 535,320,950 0 1,049,905,060 NORTHVILLE CITY 1 0 4,909,160 749,650 150,918,880 0 0 156,577,690 2 1.0000 1.0000 1.0000 1.0000 3 0 4,909,160 749,650 150,918,880 0 156,577,690 4 26 1 1,349 1,376 5 0 4,670,548 643,007 149,583,268 0 154,896,823 NOVI CITY 1 0 1,026,015,100 287,881,000 2,194,995,650 0 0 3,508,891,750 2 1.0000 1.0000 1.0000 1.0000 3 0 1,026,015,100 287,881,000 2,194,995,650 0 3,508,891,750 4 623 461 17,316 18,400 5 0 934,816,000 268,208,590 2,118,748,880 0 3,321,773,470 OAK PARK CITY 1 0 120,136,850 72,058,300 585,045,280 0 0 777,240,430 2 1.0000 1.0000 1.0000 1.0000 3 0 120,136,850 72,058,300 585,045,280 0 777,240,430 4 351 293 9,920 10,564 5 0 110,469,460 69,924,120 496,759,030 0 677,152,610 ORCHARD LAKE CITY 1 0 15,286,190 216,690 397,862,030 0 0 413,364,910 2 1.0000 1.0000 1.0000 1.0000 3 0 15,286,190 216,690 397,862,030 0 413,364,910 4 22 3 1,020 1,045 5 0 14,254,940 197,830 364,049,300 0 378,502,070 PLEASANT RIDGE CITY 1 0 5,863,610 2,940,320 150,064,800 0 0 158,868,730 2 1.0000 1.0000 1.0000 1.0000 3 0 5,863,610 2,940,320 150,064,800 0 158,868,730 4 30 4 1,226 1,260 5 0 4,135,240 1,224,260 124,285,290 0 129,644,790 Page 26
    • OAKLAND COUNTY 2009 ANALYSIS BY CLASS OF PERSONAL PROPERTY VALUATIONS BY CITIES (1) ASSESSED VALUES BY CLASS (2) EQUALIZATION FACTOR (3) EQUALIZED VALUES BY CLASS (4) PARCEL COUNT (5) TAXABLE VALUE ASSESSING AGRICULTURAL COMMERCIAL INDUSTRIAL RESIDENTIAL UTILITIES TOTAL PERSONAL DISTRICT PERSONAL PERSONAL PERSONAL PERSONAL PERSONAL PROPERTY LATHRUP VILLAGE CITY 1 0 3,295,350 0 0 966,850 4,262,200 2 1.0000 3 4,262,200 4 0 308 0 0 3 311 5 0 3,295,350 0 0 955,070 4,250,420 MADISON HEIGHTS CITY 1 0 65,630,690 65,398,550 0 11,437,400 142,466,640 2 1.0000 3 142,466,640 4 0 1,426 324 0 8 1,758 5 0 65,630,690 65,398,550 0 11,437,400 142,466,640 NORTHVILLE CITY 1 0 1,642,350 0 0 1,128,840 2,771,190 2 1.0000 3 2,771,190 4 0 84 0 0 2 86 5 0 1,642,350 0 0 1,128,840 2,771,190 NOVI CITY 1 0 174,907,270 19,270,340 0 38,992,550 233,170,160 2 1.0000 3 233,170,160 4 0 2,479 59 0 15 2,553 5 0 174,907,270 19,270,340 0 38,992,550 233,170,160 OAK PARK CITY 1 0 20,048,730 11,894,020 0 5,592,290 37,535,040 2 1.0000 3 37,535,040 4 0 1,325 96 0 7 1,428 5 0 20,048,730 11,894,020 0 5,592,290 37,535,040 ORCHARD LAKE CITY 1 0 2,024,580 0 0 1,760,070 3,784,650 2 1.0000 3 3,784,650 4 0 120 0 0 7 127 5 0 2,024,580 0 0 1,760,070 3,784,650 PLEASANT RIDGE CITY 1 0 3,164,000 0 0 934,070 4,098,070 2 1.0000 3 4,098,070 4 0 105 0 0 3 108 5 0 3,164,000 0 0 934,070 4,098,070 Page 35