BREAKOUT 5:       TOOLS FOR IMPLEMENTATION     FUNDING TOOLS FOR COMMERCIAL CORRIDOR          REDEVELOPMENT IN GRAND RAPID...
Introduction to Grand Rapids CID’s & BID’s   Investment and renewed interest has increased the    opportunity for redevel...
Introduction to Grand Rapids CID’s & BID’s   People everywhere are very interested in seeing    their own neighborhood bu...
Introduction to Grand Rapids CID’s & BID’sThe City of Grand Rapids offers two distinct types of    funding mechanisms to h...
Introduction to Grand Rapids CID’s & BID’s           Corridor Improvement District (CID)   Authorized by State of MI Publ...
Introduction to Grand Rapids CID’s & BID’s             Corridor Improvement District (CID)   Used to revitalize commercia...
Introduction to Grand Rapids CID’s & BID’s          Corridor Improvement District (CID)              Tax Increment Financi...
Introduction to Grand Rapids CID’s & BID’s       Corridor Improvement District (CID)           Tax Increment Financing (TI...
Introduction to Grand Rapids CID’s & BID’s             Corridor Improvement District (CID)                  Tax Increment ...
Introduction to Grand Rapids CID’s & BID’s           Requirements to become a CID Corridor must be classified as arterial...
Introduction to Grand Rapids CID’s & BID’s         Public benefits of organized district efforts   Provides a funding sou...
Introduction to Grand Rapids CID’s & BID’s                  Current examples of TIF   Uptown CID, Grand Rapids (2009)   ...
Introduction to Grand Rapids CID’s & BID’s                             Steps for CID Development   Feasibility study (“Ca...
Introduction to Grand Rapids CID’s & BID’s            Business Improvement District (BID)   Authorized by State of MI Pub...
Introduction to Grand Rapids CID’s & BID’s           Business Improvement District (BID)   Offers much needed financial r...
Introduction to Grand Rapids CID’s & BID’s    Business Improvement District (BID) FAQ’sWhat about the neighborhood busines...
Introduction to Grand Rapids CID’s & BID’s             Public benefit of a creating a BID   A cleaner, safer, and attract...
Introduction to Grand Rapids CID’s & BID’s             Additional benefits of a BIDProperty Owners:Desirable investment lo...
Introduction to Grand Rapids CID’s & BID’s       Examples of Special Assessment Districts   Grand Rapids Downtown Improve...
Introduction to Grand Rapids CID’s & BID’s                           Steps for BID Development   Outreach and self-evalua...
Introduction to Grand Rapids CID’s & BID’s                    Kara Wood           Economic Development Director           ...
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Breakout 5: Tools for Implementation

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Transcript of "Breakout 5: Tools for Implementation"

  1. 1. BREAKOUT 5: TOOLS FOR IMPLEMENTATION FUNDING TOOLS FOR COMMERCIAL CORRIDOR REDEVELOPMENT IN GRAND RAPIDS KARA WOOD MARK C. LEWISECONOMIC DEVELOPMENT DIRECTOR EXECUTIVE DIRECTOR CITY OF GRAND RAPIDS NEIGHBORHOOD VENTURES Introduction to Grand Rapids CID’s & BID’s
  2. 2. Introduction to Grand Rapids CID’s & BID’s Investment and renewed interest has increased the opportunity for redevelopment within neighborhood business districts. Individual projects and infrastructure improvements act as catalysts for other projects. Collaborative efforts by everyone else harnesses this energy to advance the overall look and vibrant feel of the entire commercial corridor. © Neighborhood Ventures 2012
  3. 3. Introduction to Grand Rapids CID’s & BID’s People everywhere are very interested in seeing their own neighborhood business district succeed  Businessowners want to see more customers  Landlords want tenants  Neighbors want a great experience close to home Coming up with a vision for a great neighborhood business district is easy. Paying for that is hard.  Cityfunding for improvements is non-existent.  Other resources may help fund projects, but, then what? © Neighborhood Ventures 2012
  4. 4. Introduction to Grand Rapids CID’s & BID’sThe City of Grand Rapids offers two distinct types of funding mechanisms to help organizers finance redevelopment of neighborhood business districts. Corridor Improvement District (CID)  Business Improvement District (BID) © Neighborhood Ventures 2012
  5. 5. Introduction to Grand Rapids CID’s & BID’s Corridor Improvement District (CID) Authorized by State of MI Public Act 280 of 2005 and City Commission Policy Number 900-49. Creates a Tax Increment Financing (TIF) district where a portion of property tax growth is captured and reinvested back into neighborhood projects. New investment and redevelopment increases the amount of money available over time. Funding is sustainable as long as there is new investment. © Neighborhood Ventures 2012
  6. 6. Introduction to Grand Rapids CID’s & BID’s Corridor Improvement District (CID) Used to revitalize commercial and mixed-use business corridors outside of “downtown”. Improvements may include those to the land, infrastructure, streetscape, and building stock - all for the benefit of public use:Ornamental Lighting Trees PlantersBrick Pavers Banners Façade GrantsParks/Green space Bike Racks Parking Improvements © Neighborhood Ventures 2012
  7. 7. Introduction to Grand Rapids CID’s & BID’s Corridor Improvement District (CID) Tax Increment Financing (TIF) A program for capturing the future tax benefits of real estate investments above the initial base assessed value of the property located within the district at the time of designation. © Neighborhood Ventures 2012
  8. 8. Introduction to Grand Rapids CID’s & BID’s Corridor Improvement District (CID) Tax Increment Financing (TIF) © Neighborhood Ventures 2012
  9. 9. Introduction to Grand Rapids CID’s & BID’s Corridor Improvement District (CID) Tax Increment Financing (TIF) TIF’s do not raise your taxes. The property tax rate remains the same. Property taxes are determined by the value of your property. Redevelopment creates an increase in economic activity along a corridor which potentially increases property values within the designated area. TIF creates an opportunity for the district to decide how to reinvest in projects that make an impact. Only includes properties physically located on the corridor. (along a line vs. inside a box) © Neighborhood Ventures 2012
  10. 10. Introduction to Grand Rapids CID’s & BID’s Requirements to become a CID Corridor must be classified as arterial or collector,  Must include at least 10 contiguous parcels,  District must be comprised of no less than 50% existing commercial ground floor square footage,  Traditionally commercial, residential or industrial use the preceding 30-years, and,  Development area must be zoned for mixed-use. © Neighborhood Ventures 2012
  11. 11. Introduction to Grand Rapids CID’s & BID’s Public benefits of organized district efforts Provides a funding source to make self-directed district improvements. Allows for creating an environment that attracts visitors and residents from surrounding neighborhoods. Potential for increased sales from co-op efforts. Possibility for decreased commercial vacancy rates as a result of imaginable investment activity. Assists in economic growth, encourages investment, and corrects and/or prevents deterioration. Governed by an Authority Board of property owners. © Neighborhood Ventures 2012
  12. 12. Introduction to Grand Rapids CID’s & BID’s Current examples of TIF Uptown CID, Grand Rapids (2009) Madison Square CID. Grand Rapids (2009) North Quarter CID, Grand Rapids (2012) GR Downtown Development Authority (DDA) Monroe North TIFFA Division Avenue - Cutlerville, Gaines & Byron Twp. Plainfield Avenue - Plainfield & Grand Rapids Twp. Brownfield Redevelopment projects SmartZoneSM Grand Rapids © Neighborhood Ventures 2012
  13. 13. Introduction to Grand Rapids CID’s & BID’s Steps for CID Development Feasibility study (“Can we meet Act 280 & Policy 900-49 requirements”) Build and engage a stakeholder steering team Create vision and design through corridor input Develop a CID proposal to submit to the City Hold a Public Hearing on the proposed district City creates development district and Mayor appoints Board Board executes a Development and Tax Increment Financing Plan Public Hearings on the Development and TIF Plan City authorizes the Development and TIF Plan TIF is collected (if available as a result of growth) Board provides oversight to ensure plan is completed © Neighborhood Ventures 2012
  14. 14. Introduction to Grand Rapids CID’s & BID’s Business Improvement District (BID) Authorized by State of MI Public Act 120 of 1961 and City Commission Policy Number 900-54. Creates a Special Assessment District where property owners contribute to promote and maintain the corridor and make improvements. All property owners within the special assessment district participate in this sustainable finding tool. “Your Money – Your Choice – Your Control” when used for eligible activities. © Neighborhood Ventures 2012
  15. 15. Introduction to Grand Rapids CID’s & BID’s Business Improvement District (BID) Offers much needed financial resources for a neighborhood business district to be proactive and “take it to the next level”. Provides a reliable stream of funding for things that enhance the overall image of the corridor:Annual Flowers Seasonal Decorations PromotionsSpecial Events Corridor Staff Support BrochuresClean-Ups Social Media Advertising © Neighborhood Ventures 2012
  16. 16. Introduction to Grand Rapids CID’s & BID’s Business Improvement District (BID) FAQ’sWhat about the neighborhood business association?While the traditional neighborhood business association is great,it is also voluntary to join as a member, contribute financially orserve on a committee. A BID shares the annual operating costamong all non-residential property in the district. Every propertyowner who benefits from the work also pays to make it happen.Don’t I already pay property taxes to the City?These enhanced services DO NOT REPLACE municipal servicesthat the City of Grand Rapids already provides. © Neighborhood Ventures 2012
  17. 17. Introduction to Grand Rapids CID’s & BID’s Public benefit of a creating a BID A cleaner, safer, and attractive business district. Steady and reliable funding for supplemental services and programs. Ability to respond quickly to changing needs within the business district. Potential to increase property values, improve sales, and decrease commercial vacancy rates. A district that is able to compete with others. © Neighborhood Ventures 2012
  18. 18. Introduction to Grand Rapids CID’s & BID’s Additional benefits of a BIDProperty Owners:Desirable investment location ▪ Potentially higher rentsLower vacancy rates ▪ More district amenitiesBusiness Owners:A district that attracts customers ▪ Co-op advertisingCollective marketing & branding ▪ Special events © Neighborhood Ventures 2012
  19. 19. Introduction to Grand Rapids CID’s & BID’s Examples of Special Assessment Districts Grand Rapids Downtown Improvement District (DID)  Dedicated staff support (Downtown Alliance)  District Marketing/Branding  Special events  Daily sidewalk clean-ups  Monroe Avenue snow melt system Ornamental street lighting © Neighborhood Ventures 2012
  20. 20. Introduction to Grand Rapids CID’s & BID’s Steps for BID Development Outreach and self-evaluation (“can we get enough buy in’) Build and engage a stakeholder steering team Create a project plan & list of services that might be provided Develop a special assessment formula based on need and property types Develop a BID proposal to submit is to the City for review Submit signatures of no less than 30% assessable property owners Hold a Public Hearing on the proposed district City sets consideration with a ballot by mail to property owners on record BID is approved when more than 50% of ballots cast are in support City Commission ratifies the election and formally creates the BID Mayoral appointment of BID Authority Board made up of property owners Board hires staff and provides oversight to ensure plan is completed © Neighborhood Ventures 2012
  21. 21. Introduction to Grand Rapids CID’s & BID’s Kara Wood Economic Development Director City of Grand Rapids 616-456-3196 kwood@grcity.us Mark C. Lewis Executive Director Neighborhood Ventures 616-301-3929 lewism@neighborhoodventures.org © Neighborhood Ventures 2012

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