This document discusses efforts to create successful 21st century communities in Michigan. It notes that communities must prepare leaders to tackle challenges for the next 50 years, not the last. Place matters, as seen by Volkswagen moving its headquarters to attract young talent. Prosperous states and regions have high rates of college education and knowledge industry jobs concentrated in large metro areas. Michigan lags in these areas. The League is working on initiatives like redevelopment laws and transportation to attract residents and boost economic development in communities across the state.

2. What is Driving Our Efforts?

3. 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!

4. Volkswagen of America Moves HQ

5. 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

6. Most Prosperous States
Connecticut Wyoming
New Jersey New Hampshire
Massachusetts Colorado
New York Virginia
Maryland California

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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.

19. 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.

20. 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.

21. 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.

22. 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

23. Better Communities. Better Michigan