DIDA Discussed Blueprints and Tax Abatements Thursday

IRONWOOD, MI - Friday, July 25, 2008 - The Downtown Ironwood Development Authority (DIDA) held its regular meeting at 8:00 AM yesterday. Eight of the nine Authority members were present. Eva-Smith Furgason was absent, however. Also attending the meeting were Community Development Director Dan Petersen and DIDA Secretary Jane Bowman. The press was represented by Lou Bonagura of IronwoodInfo.com and yours truly. The Daily Globe did not have a reporter on hand.

Before yesterday's meeting was called to order, reappointed members Louise Demasi and Steve Frank were sworn into full four-year terms on the Authority. There were only two major issues that needed to be addressed by the DIDA -- the Obsolete Property Rehabilitation Act and the Michigan State Housing Development Authority's (MSHDA) Blueprint for Michigan Downtowns program.

BLUEPRINT FOR MICHIGAN DOWNTOWNS PROGRAM

Last week Ironwood was selected by MSHDA as one of only six Michigan communities to participate in this latest round of the initiative. Michigan Main Street Coordinator Laura Krizov, from Lansing, sent Community Development Director Dan Peterson a letter of acceptance on July 16th, welcoming Ironwood into the program.

According to the letter, City representatives are required to attend an August 6th Blueprint Kick-Off Orientation meeting in Lansing. Petersen told the Authority that arrangements are being made for the trip.

The letter outlined the Blueprint process which involves heavy community involvement. According to Krizov's letter, the City, as an active participant in the Blueprint process, will need to work aggressively in order for the plan to work. HyettPalma, a Alexandria, Virginia-based consulting firm has been selected to draft the Blueprint for the City of Ironwood.

HyettPalma, according to their website, is the only national consulting firm specializing in the economic enhancement of Downtowns and older business districts. Since 1985, HyettPalma has restored confidence and stimulated private investment in Downtowns throughout all 50 states.

HyettPalma specializes in discovering the unique economic potentials dormant in every older business district—and in recommending action-oriented strategies which successfully activate those potentials and reinvent Downtown's economy.

The Blueprint program will require the City to create a Process Committee. Krizov explains that "This Committee will commit volunteer hours and other resources to the five-month process of putting the Blueprint plan together (this includes assisting with the market study). By December 31, 2008 (and subsequent year-ends through 2012), it is anticipated that the local community will be ready to report to MSHDA the progress of activities described below, as originally defined in the Blueprint area:

  1. Total Taxable Property Value of the Downtown
  2. Number of new jobs created
  3. Dollar amount of new private investment
  4. List of public infrastructure improvements and their costs
  5. List of economic development tools that were utilized
  6. List of new businesses
  7. List of closed businesses
  8. Number of total businesses
  9. Number of housing units
  10. Occupied retail space (square feet)
  11. Vacant retail space (square feet)
  12. Occupied office space (square feet)
  13. Vacant office space (square feet)
  14. Occupied residential space (square feet)
  15. Vacant residential space (square feet)
  16. Linked, new economic development projects, located outside of the original Blueprint area

OBSOLETE PROPERTY REHABILITATION ACT

Dan Petersen presented the DIDA with information regarding the Obsolete Property Rehabilitation Act (OPRA). He prepared a draft copy of a Review Policy for the DIDA to examine. The OPRA Ordinance would freeze property taxes at their current rate as an incentive to new investors wishing to purchase older buildings in Downtown Ironwood to rehabilitate them. The capital improvements to the renovated buildings would not be included in the calculation of the property taxes on OPRA buildings.

Steve Frank voiced his opposition to the ordinance saying that it was unfair to those businesses that are paying their taxes, and he didn't believe the plan was a big enough incentive to attract new business.

Vice-Chairman Joe Karius told the Authority that he favored the OPRA ordinance, with some reservations, however. "I think the principal that Mr. Frank brings up is one that all communities have been facing over the last ten years. What do you do to get somebody... to get you off the dime because of buildings sitting vacant for a long time? And it's not fair to... maybe it's not fair... to existing businesses who have been paying taxes all the time and running a good business. But, it's almost accepted reality that, if you don't offer the incentives, those buildings are going to continue to sit there. If they provide jobs, there's an advantage. If they bring more traffic downtown, there's an advantage. So you have to weigh that..."

Karius went on to say that many states offer huge initiatives to attract new businesses, and that in order to be competitive, Ironwood will need to do whatever they can to make locating a business here the best possible experience it can be for new investors.

Frank suggested that no action be taken on the ordinance until advice is received from the Blueprint consultants. The issue was tabled pending a recommendation by HyettPalma.

STAFF UPDATES

Dan Petersen briefed the Authority on other matters that concern the DIDA.

  • Walking Downtown Audit - (Blight Committee) Petersen asked if any Authority members would be interested in participating in an Audit of Downtown blight issues and vacant buildings. Several Authority members agreed to participate, and the Audit was scheduled for Monday, July 28 at 1:30
  • Wayfinder Signs - Petersen and City Manager Scott Erickson decided that the sign designated originally for McLeod was not suitable because it was undersized for the area and it was confusing. Louise Demasi suggested moving a new sign onto private property across the street from Pizza King Joe's. Demasi said she was certain none of the property owners would object to the sign. She listed off the owners and Petersen said he would check with them about erecting a sign along that stretch.
  • Brite Spot Sign, Hiawatha Sign & Sandwich Board Signs - Steve Frank emailed Petersen graphics supplied by Saari Signs showing proposed designs for the signs requested. After some discussion it was decided that the signs should be ordered and placed as soon as possible.
  • Facade Update - The third round of MSHDA's Facade program is becoming more and more difficult because of rearranging being done in Lansing, according to Petersen. He said that the City is continuing to move ahead with the program, but he was unsure as to what lies ahead with the changes in the State. On August 6th the outstanding bids for previous rounds will be opened.
  • Blacktop on Downtown City Sidewalk - Dan Petersen told the Authority that he discussed the problem with the City Manager. According to City Manager Erickson, before the concrete can be returned to the sidewalk, one frost season's worth of compaction needs to take place.

Before the meeting adjourned, Steve Frank voiced concern about the Sun papers in plastic bags deposited throughout the downtown. The authority briefly discussed what could be done, and Dan Petersen told the Authority that he would contact the paper to try to resolve the issue.

[AUDIO]

Jim Albert