Weitere ähnliche Inhalte Ähnlich wie Breakout 5: Tools for Implementation (20) Breakout 5: Tools for Implementation1. BREAKOUT 5:
TOOLS FOR IMPLEMENTATION
FUNDING TOOLS FOR COMMERCIAL CORRIDOR
REDEVELOPMENT IN GRAND RAPIDS
KARA WOOD MARK C. LEWIS
ECONOMIC DEVELOPMENT DIRECTOR EXECUTIVE DIRECTOR
CITY OF GRAND RAPIDS NEIGHBORHOOD VENTURES
Introduction to Grand Rapids CID’s & BID’s
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. 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. Introduction to Grand Rapids CID’s & BID’s
The 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. 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. 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 Planters
Brick Pavers Banners Façade Grants
Parks/Green space Bike Racks Parking Improvements
© Neighborhood Ventures 2012
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. Introduction to Grand Rapids CID’s & BID’s
Corridor Improvement District (CID)
Tax Increment Financing (TIF)
© Neighborhood Ventures 2012
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. 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. 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. 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. 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. 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. 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 Promotions
Special Events Corridor Staff Support Brochures
Clean-Ups Social Media Advertising
© Neighborhood Ventures 2012
16. Introduction to Grand Rapids CID’s & BID’s
Business Improvement District (BID) FAQ’s
What about the neighborhood business association?
While the traditional neighborhood business association is great,
it is also voluntary to join as a member, contribute financially or
serve on a committee. A BID shares the annual operating cost
among all non-residential property in the district. Every property
owner 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 services
that the City of Grand Rapids already provides.
© Neighborhood Ventures 2012
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. Introduction to Grand Rapids CID’s & BID’s
Additional benefits of a BID
Property Owners:
Desirable investment location ▪ Potentially higher rents
Lower vacancy rates ▪ More district amenities
Business Owners:
A district that attracts customers ▪ Co-op advertising
Collective marketing & branding ▪ Special events
© Neighborhood Ventures 2012
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. 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. 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