New bills could help downtowns

Legislation introduced in the Michigan Senate will provide large and small cities with planning and development tools to help develop downtown businesses and neighborhoods, according to Senator Jason Allen (R-Traverse City), chairman of the Senate Commerce and Tourism Committee.

The 15-bill legislative package was introduced December 4. Committee hearings are likely to begin in late January.

Senator Allen said the package was developed following the past several months of committee hearings throughout the state. He said committee members met with municipal leaders in Port Huron, Grand Rapids, Midland, Detroit and Kalamazoo to hear from business, government and neighborhood leaders on what programs state government should support to help local development efforts.

“Downtowns of all shapes and sizes play a key role in fostering new businesses, and the entrepreneurs looking at investment want to see development that allows for quality work life, family life and social life experiences,” Allen said. “When talking to local retailers we heard on numerous occasions that place and destination become important in a society of growing knowledge-based businesses.”

“Downtowns are important symbols for the economic health of a community, the partnership between the public and private sectors, local pride and community history,” he added.

The legislation provides for:

• Encouraging downtowns to become destinations by allowing the Neighborhood Enterprise Zone Act to be used to renovate or build hotels.

• Promoting downtown living by permitting the tax rate for downtown condos and apartments to remain at pre-development levels until the units are sold or rented. It also would amend the Neighborhood Enterprise Zone Act to allow its use in downtowns for apartments and other residential restructures.

• Encouraging downtown redevelopment by creating a retail renaissance zone category to stimulate development of rundown portions of downtowns. The new ones must be designated by October 1, 2008, and are limited to cities and villages.

• Increasing viability of downtown retail by granting Downtown Development Authorities express permission to assist with a leaseholder’s improvements for retail. It also would allow DDAs to operate retail business incubators to support local entrepreneurs.

• Removing barriers to business start-ups by allowing a business to pay an increased fee to get expedited processing of its liquor permit by the Michigan Liquor Control Commission.

“Vibrant downtowns can be large or small,” Sen. Allen said. “They include housing, commercial and retail entities that ensure traffic that flows at different times of the day, seven days per week. Vibrant downtowns are incubators for small business start-ups and independent businesses to complement existing large retail.”