Dan Gilmartin: What is Michigan's Redevelopment Plan


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Morning Plenary:
Dan Gilmartin, Executive Director
Michigan Municipal League

Published in: Business, Technology
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Dan Gilmartin: What is Michigan's Redevelopment Plan

  1. 1. What is Driving Our Efforts?
  2. 2. Creating Successful 21st Century Communities Competition (often global) for people, jobs and culture We cannot wait for the state to save us! Our services and events must prepare Michigan’s community leaders to tackle the challenges of the NEXT fifty years, not the LAST 50 years. It is about PLACE. PLACE MATTERS!
  3. 3. Volkswagen of America Moves HQ
  4. 4. Why will Volkswagen Move? VW moving U.S. headquarters to lure talent. - Associated Press Chief Executive Stefan Jacoby said that VW is moving in the hopes of attracting a skilled young work force. – Washington Post – quot;For a young talent, 35 years old, to come here with his family ... is a very important factor,quot; Jacoby told the Post. quot;By reducing this organization by 30 percent, you need even more talents, more creative people, more motivated people.quot; Volkswagen AG is moving its North American headquarters from Michigan to northern Virginia to attract a younger skilled workforce. - Detroit Free Press The Troy Young People Question
  5. 5. Most Prosperous States Connecticut Wyoming New Jersey New Hampshire Massachusetts Colorado New York Virginia Maryland California
  6. 6. Traits of Prosperous States High proportion of wages from knowledge industries High proportion of college grads Big metro with higher per capital income than state Largest city in that metro has high proportion of college grads
  7. 7. Michigan’s Income Rank Aligning with Our College Attainment Rank 10 16 15 20 26 25 34 34 30 2000 2006 35 Per Cap Income % 4 year degree
  8. 8. Most Prosperous Regions San Jose/San Francisco Washington/Baltimore New York/Newark Boston/Worchester/Manchester (NH) Hartford Denver/Boulder Minneapolis/St. Paul San Diego Seattle Philadelphia
  9. 9. Major Metros Win! Smarter… 33 Under 1 m 1-1.6 m 31 32.2 1.6-3.5 m 29 3.5 m up 27 28.1 25 26.6 23 21 21.2 19 17 15 % with 4-year degree
  10. 10. Major Metros Win! Richer… $41,000 Under 1.0 m $39,000 1.0-1.6 m $39,601 $37,000 1.6-3.5 m $35,000 3.5 m or more $33,000 $34,853 $31,000 $33,140 $29,000 $27,000 $28,583 $25,000 Per cap income
  11. 11. Major Metros Win! Fewer Poor… 40 Under 1 m 1-1.6 m 1.6-3.5 m 37.2 35 3.5 m up 30 30.5 30 27.7 25 25.6 23 22.2 20 20.8 15 % under $25K % over $75K
  12. 12. Michigan Struggling 0 5 10 15 15 20 26 25 34 34 30 Michigan 35 Detroit 40 45 GR 49 45 50 Rank per cap Rank Pop. w/ degree
  13. 13. Job Growth, U.S. 3 All industry 2.5 Low education Percent change 2001-05 High education 2 1.5 $52,980 1 $40,677 0.5 $31,995 0
  14. 14. Job Growth, Michigan $49,629 1 0 -1 All industry -2 Low education $41,214 % change 2001-05 -3 $35,725 High education -4 -5 -6 -7
  15. 15. A New Paradigm for Regional Cooperation Attracting Young People Public Transportation A Variety of Housing Options It is less about who provides services than it is Improving Entrepreneurial Climate about implementing true regional strategies to meet Protecting Green Spaces our collective challenges. Reviving Central Cities Leveraging Anchor Institutions Green Infrastructure
  16. 16. Fostering New Programs and Events The League is creating original services aimed at improving the future prospects of communities in Michigan. Internal Policy Team and Municipal Litigation Center reports – Dealing with Foreclosures – Tools for Restoring Communities Community Design and Education Program Center – One-of-a-kind training and educational programming – Community “Audit” for attracting young people and fostering an entrepreneurial environment – Creation of a Community Design Center
  17. 17. League Redevelopment Initiatives Corridor Improvement Authority passed into law. – Municipalities can create special authorities to redevelop commercial corridors that are at least 30 years old. Corridor Improvement Authority fixes passed Senate and expected to pass House this week or next week. – This makes it easier for local units to create a CIA and create redevelopment in corridors. Commercial Rehabilitation Act passed into law. – This allows a municipality to establish a commercial redevelopment district where taxes can be abated for commercial property.
  18. 18. League Redevelopment Initiatives (cont’d) Brownfield Redevelopment Act reauthorization and improvements passed into law. – Municipalities can establish brownfield redevelopment zones and authorities, which may implement brownfield plans for the redevelopment of commercial or industrial property. – This is one of the few Acts where local projects can receive state dollars in addition to local dollars, in order to create redevelopment. Brownfield tax credits bills swapped chambers (1 in House and 1 in Senate). – The credit is increased from 10% to up to 12.5 % of the costs of the investment paid, or up to 15% of the costs if the project was designated as an urban development area project by MEGA.
  19. 19. League Redevelopment Initiatives (cont’d) Redevelopment liquor licenses enacted into law. – Creates new liquor licenses that are issued specifically for redevelopment projects. Commercial Rehabilitation Act grocery districts passed the Senate. – Allows for Commercial Rehab Act abatements for retail supermarket, grocery store, produce market, or delicatessen in an underserved area.
  20. 20. League Redevelopment Initiatives (cont’d) Downtown legislative package being considered by Senate. – Senate has a variety of bills on assisting downtowns with economic redevelopment. • DDAs—allow for business incubators, low-income loans • Increase the historic tax credits • Recreate the Commercial Redevelopment Act to provide abatements for knowledge-based businesses NEZ—allow by parcel, allow for hotels. • Create urban recreation trails. – The MML will propose a variety of other ideas to add to the package, which are expected to become bills and see legislative action.
  21. 21. League Redevelopment Initiatives (cont’d) Corridor Improvement Authority (CIA) amendments for Detroit project passed into law. CIA to be strengthened for retail and restaurant complex at 8 Mile Road and Woodward Avenue. Transportation revitalization zones – Leads to transit-oriented development – Creates mass transit in urban areas – Tool to help direct businesses and dollars on transit routes/stops Increase transportation revenues to maintain transportation infrastructure. – Gas tax
  22. 22. Better Communities. Better Michigan